IRLF 


THE  INDIAN 
MARKET 


COMMERCIAL  AND  ECONOMIC 

DIGEST  FOR  THE 

EXPORTER 


BY 

F.  A.  WILLIS 


1 


GIFT  OF 


THE 
INDIAN  MARKET 


A  COMMERCIAL  AND 

ECONOMIC  DIGEST  FOR  THE 

EXPORTER 


By  F.  A.  (WILLIS 


PRINTED  BY  THE  UNITY  PRESS,  INC. 
HOLYOKE,  MASS. 


(Copyright,  1922,  F.  A.  WilUs) 

Qa,toetok 


PREFACE. 


It  is  a  well  acknowledged  fact,  and  we  might  as  well  face 
it,  that  the  executives  or  those  governing  the  foreign  policies 
of  our  large  industrial  organizations,  do  not  find  the  time  to 
read  through  volumes  of  economics  on  various  countries. 
Their  knowledge  of  the  politics  and  religion  of  the  people  is 
often  superficial,  yet  both  of  these  factors  are  frequently  of 
vital  importance  to  the  future  of  our  trade.  The  represen- 
tatives who  are  sent  to  foreign  fields  by  our  manufacturers, 
are  generally  too  occupied  with  the  business  in  hand,  namely, 
immediate  sales  and  commissions,  to  make  a  sound  study  of 
the  market.  They  almost  always  return  to  their  home  offices 
with  a  report  of  conditions;  but  frequently  this  is  of  little 
more  practical  use  than  the  impressions  of  a  seasoned  tourist. 

It  can  be  plainly  seen,  therefore,  that  a  work  is  needed, 
which,  in  a  condensed  form,  will  bring  out,  first,  the  economic 
conditions  of  the  country,  and  then  its  commercial  possibili- 
ties as  a  market  for  our  wares.  The  most  casual  reader  can 
see  the  relation  of  one  to  the  other.  A  work  of  this  sort 
should  also  contain  much  general  and  useful  information  for 
those  contemplating  a  trip  to  the  country  and,  for  the  purpose 
of  convenience,  should  be  so  written  or  indexed  that  the  busy 
executive  can  quickly  turn  to  the  subject  desired.  It  should 
be  a  pamphlet  and  not  a  large  volume,  for  then  it  can  be  con- 
veniently carried  about  in  the  pocket.  A  pamphlet  of  this 
sort,  however,  cannot  cover  the  entire  possibilities  for  each 
type  of  article  manufactured.  For  such  information  the 
manufacturer  must  send  a  man  to  the  country  to  study  the 
opportunities  for  his  particular  commodity. 

3 

SO  2?  2 


India,  with  the  possible  exception  of  China,  is  the  world's 
largest  independent  market,  and  contains  one-fifth  of  the  hu- 
man race.  It  is  rich  in  mineral  deposits  and  produce — yet 
how  much  is  known  of  it  as  a  market?  Due  to  its  great  dis- 
tance, its  trying  climate  and  its  prejudice  in  favor  of  British 
trade,  we  have  long  neglected  it.  I  cannot  help  but  feel  that 
the  time  to  enter  a  market  is  when  things  are  at  their  ebb; 
then  one's  business  grows  correspondingly  with  the  return  to 
normal  conditions.  And  not  this  alone,  for  in  extending  a 
hand  of  friendship  when  conditions  are  bad,  and  in  showing 
that  we  intend  to  enter  the  field  permanently,  our  reputation 
also  is  greatly  enhanced.  If  we  wait  until  the  wheel  is  fairly 
spinning  and  then  jump  on,  the  effort  to  reach  the  hub  will 
be  greater  and  less  sure,  for  there  will  always  be  those  ahead. 

The  pleasant  task  of  compiling  this  pamphlet  was  not 
really  a  contemplated  one  on  my  part.  It  came  about  or  was 
prompted  by  a  letter  I  received  from  the  Department  of  Com- 
merce in  "Washington.  Primarily  they  had  written  a  member  of 
the  firm  with  which  I  am  at  present  affiliated,  and  asked  for 
suggestions  as  to  the  type  of  information  they  should  secure 
from  India,  which  would  be  the  most  beneficial  to  our  manu- 
facturers and  merchants,  as  well  as  to  the  general  promotion 
of  our  trade.  This  letter  was  handed  to  me  for  reply,  and  I 
sent  them  a  very  long  and  complete  questionnaire.  The  result 
was  that  I  was  subsequently  asked  to  answer,  for  their  infor- 
mation, as  many  of  the  questions  as  I  could. 

Realizing  that  many  of  these  questions  were  small  articles 
in  themselves,  if  properly  answered,  and  that  there  was  a 
great  lack  of  continuity  of  thought,  I  decided  it  would  be 
more  to  the  point  to  compile  a  small  pamphlet  covering  the 
more  important  facts. 

I  was  in  a  rather  fortunate  position  to  do  this,  for  my 
grandfather  having  served  throughout  the  Mutiny,  and  my 
father  having  been  born  in  India,  my  interest  in  that  country 
is  hereditary.  I  have  further  had  the  opportunity  of  personal 
experience  in  trading  with  India  as  the  export  manager  of 
two  firms,  and  have  spared  no  effort  in  making  an  exhaustive 
study  of  India  as  a  market. 

4 


Though  this  pamphlet  does  not  pretend  to  be  exhaustive, 
nevertheless  the  facts  contained  have  been  obtained  from  the 
most  recent  and  authoritative  sources  during  the  past  three 
years.  I  want  it  to  be  of  interest  to  all  who  may  care  to  read 
it ;  and  can  hope  for  no  more  than  that  it  will  be  of  service. 

F.  A.  WILLIS. 


CONTENTS. 


Foreword 
Chapter    1.    Geography  and  Population. 


Density  of  Population. 
Divisions  of  India. 


(A) 
(B) 

Chapter    2.    Climate  and  Seasons. 

(A)  The  Monsoon. 

(B)  Rainfall  Statistics. 

Chapter    3.    Distribution  of  Crops  and  Minerals. 

(A)  Crops. 

(B)  Crop  Resources  by  Provinces. 

(C)  Minerals. 

Chapt_er    4.    General  Description  of  Mineral  Deposits  and  Mines. 

(A)  Coal. 

(B)  Mica. 

(C)  Chrome  and  Manganese  Ore. 

(D)  Petroleum. 

Chapter    5.    Labor — is  Efficiency,  Sources  and  Wages. 

(A)  General  Characteristics. 

(B)  Wages  in  Industries. 

(C)  Wages  other  than  Industry. 

(D)  Hours  and  Conditions  about  Plants. 

Considerations  Contingent  on  Erecting  a  Plant  in  India. 
Indian  Currency  and  Coinage. 
Indian  Railways. 


Chapter 
Chapter 
Chapter 
Chapter 


Commercial  Centres  of  India,  their  Trade  and  Local  In- 
dustries. 

Chapter  10.    Industrial  and  Commercial  Establishments  in  India. 

(A)  Commercial  Establishments  in  Chief  Seaports. 

(B)  Industrial  Establishments  in  India. 

(C)  General  Distribution  of  Industrial  Plants. 

(D)  Types  of  Industries  Financed  and  Run  by  Euro- 
peans and  Natives. 

7 


Chapter  11.     The  Indian  Commodity  Market :— Demand  and  Competition. 

(A)  Commodities  India  Must  Buy  in  Order  of  Im- 
portance. 

(B)  Consumer  Demand. 

(C)  Competition  Met  with  in  Each  Class  of  Goods. 

(D)  A  Note  on  German  and  Japanese  Competition. 

Chapter  12.     Suggestions  for  Promotion  of  Trade  in  India. 

(A)  Home  Considerations  and  Preparation. 

(B)  Choosing  a  Representative. 

(C)  Departure. 

(D)  Time  for  Departure  and  Routes  of  Approach. 

(E)  Terms  of  Sale,  Credit  Risks,  Banks. 

(F)  Methods  of  Sales. 

(G)  Quotations  to  India  and  their  Meanings. 
(H)  Documents. 

(I)     Methods    of    Receiving    Payments    in    United 
States  for  Goods  Shipped. 

Chapter  13.    Expenses  of  Establishing  an  Office  in  Calcutta. 

(A)  Office  Space,  Rents,  Salaries,  etc. 

(B)  Advertising  in  India. 

(C)  Packing  and  Marking  of  Merchandise. 
Chapter  14.    Useful  Information  for  the  Commercial  Representatives. 

(A)  Clothes  for  India. 

(B)  Railway  Travelling— Bedding. 

(C)  Travelling— Servants. 

(D)  Accommodations  on  Trains. 

(E)  Railroad  Rates. 

(F)  Distances  and  Time  Taken  Between  Some  of  the 
Important  Cities. 

(G)  Hotel  Charges. 
(H)     Motoring. 

(  I )  Servants — Domestic. 

(J)  Mail. 

(K)  Doctors'  Fees. 

(L)  Cable  Rates. 

(M)  Telegraph  Rates. 

(N)  Telephone  Rates. 

(O)  Indian  Currency. 

(P)  Indian  Time. 

(Q)  Approaching  Officials  of  Native  States. 

(R)  Indian  Weights  and  Measures. 

(S)  British  Indian  Coastal  Sailings. 

(T)  Interest  Table  and  Conversion  Table. 

Chapter  15.    America's  Chief  Faults  in  Trading  with  India. 


FOREWORD. 


In  compiling  this  pamphlet,  I  have  endeavored  to  furnish 
as  much  information  and  general  knowledge  essential  to  Man- 
ufacturers and  Merchants  contemplating  trade  with  India,  as 
can  be  given  in  a  small  amount  of  space.  I  have  purposely 
not  furnished  facts  on  the  routine  of  export  and  shipping 
papers,  etc.,  for  such  information  is  generally  known  and 
easily  accessible  by  applying  to  proper  sources  at  home.  In 
every  handbook  or  authoritative  work  on  India,  there  is  much 
information  not  necessary  to  the  average  export  manager, 
who,  because  he  is  trading  in  many  countries  of  the  world, 
cannot  become  an  authority  on  any  one,  and  must,  of  neces- 
sity, seek  out  only  the  more  important  facts  and  knowledge 
relative  to  each  country's  trade.  I  have,  therefore,  tried  to 
eliminate  any  unnecessary  facts. 

As  India  is  a  country  which  only  recently  became  of  com- 
mercial importance  to  our  Manufacturers  and  Merchants,  and 
as  it  is  at  all  times  difficult  to  obtain  recent  information  on 
commercial  conditions  in  the  country,  the  Department  of  Com- 
merce should  furnish  a  work  dealing  with  the  most  important 
conditions  in  India,  of  benefit  to  our  Manufacturers  and  Mer- 
chants. A  yearly  report  would  be  of  the  greatest  advantage. 

In  any  work  dealing  with  India,  generalities  should  be 
avoided,  because  it  is  a  country  where  conditions  in  almost 
every  Province,  Presidency,  and  State  vary,  frequently  to  a 
marked  degree.  Due  to  limiting  my  space  I  have,  however, 
been  forced  to  generalize,  particularly  in  costs  and  rates  of 
various  wages  and  for  various  expenses.  In  all  such  cases  it 
must  be  remembered  that  prices  of  almost  everything  are 
highest  in  Calcutta,  then  in  order,  Bombay,  Madras,  Karachi, 

9 


Rangoon,  and  up-country  centres.  This  general  condition  also 
applies  relatively  to  the  environments  of  the  cities  mentioned. 
Conditions  are  constantly  changing  in  India  and  for  any 
decision  of  great  importance  it  would  be  well  to  get  the  most 
recent  prices  and  facts  by  cable.  The  data  and  information 
contained  in  this  pamphlet  applies  in  some  cases  to  1919 ;  but 
in  general  to  1921,  even  up  to  the  last  six  months. 

It  is  impossible  for  one  person  to  have  an  intimate  per- 
sonal knowledge  of  all  commodities,  costs,  and  conditions  of 
Trade  with  India,  unless  he  makes  such  a  study  his  life  work. 
Even  then  he  would  find  conditions  continually  changing.  In 
order,  therefore,  to  supply  as  much  correct  information  as 
possible,  and  in  cases  where  my  personal  knowledge  and  ex- 
perience have  been  limited,  I  have  referred  to  authoritative 
works  for  the  necessary  data,  and  have  tried  to  obtain  the 
most  recent  and  complete  works  of  such  authorities.  Statis- 
tics of  Industrial  Wages,  Competition  met  with  in  various 
Articles,  Distribution  of  Crops  and  Rainfall,  etc.,  have  been 
in  most  cases  abbreviated  or  are  direct  extracts  from  the 
works  of  various  economists  and  authors.  To  the  following 
authors  and  their  works  I  am  indebted  for  much  statistical 
information : 

Sir  John  Strachey — "  India,  Its  Administration  and 
Progress." 

Prof.  Jadunath  Sarkar,  M.  A. — "Economics  of  British 
India,"  Fourth  Edition. 

Mr.  Thomas  M.  Ainscough,  0.  B.  E. — "Report  on  Con- 
ditions and  Trade  in  India." 

Sir  Theodore  Morrison — "Economics  of  British  India," 
Fourth  Edition  Revised. 

Sir  Stanley  Reed,  LL.  D.— "India  Year  Book,  1921." 

Archibald  A.  C.  Dickson — "Mica  Miners'  and  Prospec- 
tors' Guide." 


10 


1. 

GEOGRAPHY  AND  POPULATION. 


India,  including  Burma,  contains  over  one  and  three- 
quarter  million  square  miles,  with  a  population  of  approxi- 
mately 350,000,000  peoples — about  one-fifth  of  the  human  race. 
Roughly,  the  population  is  divided  as  follows: 

United   Provinces    19.5%  of  population 

Bengal  Presidency    18.6%  "  " 

Madras  Presidency   16.9%  " 

Bihar  and  Orissa 14.1%  " 

Punjab  and  Northwest  Frontier 

Province 9.0%" 

Bombay  Presidency    8.0%  ".          " 

Other  divisions   14.9%" 

(A)  The  Average  Density  of  Population  for  the  Indian 
Empire  is  about  175  to  the  square  mile,  though  in  some  sec- 
tions it  runs  as  high  as  1,800  (not  average),  Native  States, 
about  100  to  the  square  mile. 

(B)  India   may   be   divided   into   three   well   defined 
regions : 

1.  The  Himalayas. 

2.  The  Northern  River  Plains. 

3.  The  Deccan  or  Southern  Tableland. 


BU 


PROVINCE  A  STflTES  Mfl 
OF 

INDIA 


2. 
CLIMATE  AND  SEASONS. 


(A)  THE  MONSOON.  There  are  two  Monsoons  in  India, 
namely,  the  Northeastern  Monsoon,  from  December  15th  to 
the  end  of  March — very  dry,  cool.  Only  about  10%  of  the 
rainfall  is  then  received.  These  winds  frequently  produce 
light  rain  and  storms  in  Upper  India  and  snowfalls  and  high 
winds  in  the  Himalayas.  This  rain  is  very  important  for  the 
Punjab.  From  March  to  May  there  is  a  hot  weather  rain,  very 
useful  to  Assam. 

The  Southwestern  Monsoon  (90%  of  India's  rain)  is 
from  June  to  September.  In  October  the  rainfall  soon  ceases. 
The  Bombay  Current  begins  to  give  rain  in  the  early  part 
of  June,  about  two  weeks  before  the  Bengal  Current.  In  or- 
der to  insure  good  crops  the  rainfall  during  the  Monsoon 
should  be  punctuated  by  spells  of  clear  weather  between  the 
periods  of  rain.  In  general,  any  Monsoon  is  good,  as  long 
as  it  is  wet.  The  rainfall  should  not  vary  greatly  from  year 
to  year,  as  the  young  crops  would  be  washed  away  or  burnt 
up.  The  health  and  purchasing  power  of  the  people  depend 
largely,  from  year  to  year,  on  the  result  of  the  Monsoon. 

*(B)  Normal  rainfall  may  be  pro-rated  approximately 
as  follows: 

EXCESSIVE  EAINFAI>L. 

Malabar   Coast    127      inches 

Lower  Burma  .  123 


^Professor  Jadunath  Sarkar,  M.  A.,  "Economics  of  British  India/ 
Fourth  Edition. 

13 


Konkon   ............................  109      inches 

Assam   ..  ...........................  98 

Bengal  (Lower)   ....................  92 

Eastern  Bengal    ....................  85 

HEAVY  BAINFALL. 


" 


" 


Western  Bengal 59 

Orissa    57          " 

Chota  Nagpur 53          " 

Central  Provinces   (East) 53 

Bihar 50          " 

MODERATE  RAINFALL. 

Upper  Burma  42.2 

Central  Provinces  (East  and  West)...  45.1       " 

Madras  Coast  (North) 40.3       " 

United  Provinces   39.4       " 

Mysore    36.5 

Nizam's  Dominion   35.7 

Berar 31.1 

Guzerat 33.6       " 

Bombay  Deccan   31.9        " 

SCANTY  RAINFALL. 

Madras  Deccan  24 

Rajputana  (East) 24          " 

Punjab  (East  and  North) 23 

Rajputana    (West)    12          " 

Punjab   (Southwest)    9          " 

Sind  6 


14 


3. 

*DISTRIBUTION. 

of 
CROPS  AND  MINERALS. 

(For  Indian  "Weights  and  Measures  See  Page  81.) 


(A)     CROPS. 

RICE:  One-third  of  India's  cultivated  land  is  under 
rice — eaten  by  Bengalis,  Assamese,  Uriyas,  Madrasis,  Biharis 
and  Marattias.  Grown  in  hot  and  damp  climate,  requires 
36  inches  of  water.  Generally  only  one  crop  raised  a  year. 
(In  Bengal,  2  sowings,  but  not  in  same  field.)  The  usual 
yield  of  rice  per  acre  is  30  maunds  of  paddy. 

WHEAT:  Second  largest  consumed  foodstuff  in  India, 
chiefly  among  Southern  India  people,  in  Central  Provinces, 
Bihar,  United  Provinces  and  the  Punjab.  Grown  in  cold 
weather,  requires  light  rains — sown  late  in  October — har- 
vested in  April  or  June.  Irrigated  area  wheat  yields  about 
15  to  20  maunds  per  acre. 

MILLETS:  (Jawar,  Bajra  and  Ragi),  eaten  by  poorer 
classes,  staple  crops  of  dry  area.  The  yield  is  about  8  maunds 
per  acre. 

PULSES  :  Second  in  importance  among  foodstuffs,  grown 
as  a  second  crop  of  year  in  rotation  with  some  principal 
crop.  Requires  little  rain  or  watering — grown  in  winter 
(sown  October — reaped  March) — yield,  7  to  10  maunds  per 
acre. 

SUGAR  CANE:  Mainly  grown  in  United  Provinces,  the 
Punjab,  Bihar  and  Bengal;  some  two  and  one-half  million 


*Abbreviated  Extract,  Sarkar,  4th  Edition. 

15 


TIBET 


•  OtlHl 
COT1BO 

,ct6  0»«»« 


''it.  Rice 


BAT         or      BI 


SEA 


PRODUCE     MflP 
or 

INDIA 


acres  under  cultivation  ;  requires  much  water  and  well  drained 
soil ;  takes  year  to  ripen ;  yield  of  unrefined  sugar  (gur)  from 
one  and  one-half  to  three  tons  per  acre. 

TEA:  Requires  well  distributed  rainfall  of  about  100 
inches;  usually  grown  from  300  to  700  feet  above  sea  level. 
Grown  chiefly  in  Bengal,  North  East  Bihar  and  Assam. 

JUTE:  Grown  by  rivers  and  low  lying  lands,  should  be 
partly  submerged  at  first.  On  higher  lands  much  fertilizer 
an  4  irrigation  must  be  used.  Sown  in  April,  cut  in  Septem- 
ber ;  usually  yields  about  15  maunds  clear  fibre — in  good  years 
might  yield  25  or  30  maunds. 

COTTON:  Grown  chiefly  in  Sind,  Madras,  Central 
Provinces  and  Bombay  districts.  It  yields  about  one  and  a 
half  maunds  of  fibre  and  three  and  three-quarters  maunds  of 
seed  per  acre. 

FORESTS  :  Cover  about  20%  of  total  area  of  India,  about 
60%  of  Burma,  45%  of  Assam,  17%  of  Central  Provinces, 
9%  of  Bombay,  and  8%  of  Punjab,  13%  of  Bengal,  3%  of 
Bihar  and  Orissa.  Chief  commercial  woods  are  Teak,  Myro- 
balsam,  Rubber,  Sandalwood  and  Ebony. 

(B)     CROP  RESOURCES  BY  PROVINCES. 

UNITED  PROVINCES:  First  in  Sugar,  second  in  Wheat, 
third  in  Millets. 

BOMBAY:  First  in  Millets,  second  in  Cotton,  third  in 
Oil-seeds. 

BURMA  :     Fourth  in  Rice  and  Oil-seeds,  fifth  in  Tobacco. 

MADRAS:  First  in  Oil-seeds,  second  in  Millets  and  To- 
bacco, third  in  Rice,  Cotton  and  Tea. 

BENGAL  :     First  in  Rice,  Jute  and  Tobacco,  second  in  Tea. 

BIHAR  :  Second  in  Rice  and  Jute,  and  third  in  Oil-seeds, 
Sugar  and  Tobacco. 

ASSAM:    First  in  Tea  and  third  in  Jute. 

CENTRAL  PROVINCES  AND  BERAR  :  First  in  Cotton,  second 
in  Oil-seeds,  third  in  Wheat. 

THE  PUNJAB:  First  in  Wheat,  second  in  Sugar  and 
fourth  in  Cotton. 

17 


(C)     MINERALS. 

COAL,:  Chief  fields  are — Jharria,  Raniganj,  Giridih, 
Daltonganj,  Rajmahal,  Ramgarh,  Bokaria  and  Sambalpur,  all 
of  Bengal  and  Bihar.  Outside  of  these  Provinces,  near  Hy- 
derabad, are  the  next  best  fields.  Other  fields  are  in  Assam, 
the  Mohpani  Mines  of  the  Central  Provinces,  the  Khost  and 
Sor  Range  of  Baluchistan,  the  Salt  Range  of  the  Punjab  and 
the  Bihanir  Mines. 

GOLD:  Chiefly  from  Mysore  fields  at  Kolar  and  other 
places ;  others  are  the  Hutti  Mines  in  the  State  of  Hyderabad 
and  the  Anantapur  District  of  Madras. 

MANGANESE  AND  CHROME  ORES:  From  the  Central 
Provinces,  Madras,  Bombay,  Bihar  and  Mysore. 

MICA  :  Chiefly  from  Chota  Nagpur,  Madras  and  Rajpu- 
tana.  India  supplies  about  one-half  of  the  world's  mica. 

PETROLEUM  :     Chiefly  in  Burma,  Assam  and  Punjab. 

IRON:  Chiefly  in  Bengal,  Bihar  and  Orissa;  some  in 
Central  Provinces  and  Chota  Nagpur. 

SALT:  Evaporation — from  Madras,  Bombay,  Sind  and 
Burma ;  also  from  lakes  in  Rajputana.  Rock  Salt — from  Salt 
Range,  in  the  northwest  Frontier  Provinces  and  the  Salt  Mines 
in  the  Punjab. 

AMBER  AND  GRAPHITE:  Amber  is  found  in  small  quan- 
tities in  Burma — Graphite,  mined  to  some  extent  in  Travan- 
core. 

TIN:  The  only  persistent  attempt  to  mine  it  has  been 
In  Burma;  production  approximately  116  to  175  tons  an- 
nually. 

COPPER:  Chiefly  found  in  Southern  India,  Rajputana 
and  along  portions  of  the  Himalayas  (no  attempt  is  made  to 
utilize  by-products — simply  smelted  for  metal  alone). 

LEAD:  The  only  lead  mine  of  any  importance  being 
worked  in  India  is  the  Badwin  Mines.  Production  varies 
from  about  7,000  to  12,000  tons  yearly. 

SILVER:  Obtained  as  by-product  from  lead-zinc  ores  of 
Badwin  Mines,  also  some  produced  at  the  Anatapur  Mines — 

18 


production  from  one  million  to  one  and  three-quarter  million 
ounces  yearly. 

PRECIOUS  STONES:  Ruby,  sapphire  and  jadeite  only 
ones  of  commercial  importance,  though  diamonds  and  semi- 
precious agate  formations  are  found.  Undertakings  chiefly 
in  Burma. 

WOLFRAM  :  Chiefly  mined  in  districts  of  Merguj  and 
Tavoy  in  lower  Burma,  also  in  Malay  Peninsula. 


19 


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4. 


GENERAL  DESCRIPTION 

of 
MINERAL  DEPOSITS  AND  MINES. 


(A)  COAL.  The  deposits  of  coal  in  India  and  their 
proper  development  form  a  most  important  factor  in  the 
indefinite  extension  of  the  country's  iron  and  steel  industries. 
Generally  speaking,  the  coal  now  being  worked  in  India  is 
near  the  surface  and  labor  is  comparatively  cheap.  A  great 
deal  of  the  mining  of  all  ores  in  India  might  be  said  to  be 
more  like  quarrying  than  mining,  as  known  in  this  country. 
The  cost  per  ton  of  coal,  wholesale,  at  the  pit's  mouth,  varies 
considerably  in  all  parts  of  India.  The  present  price  is  an 
average  of  about  12  shillings.  The  working  costs,  which  for- 
merly were  very  low,  have  risen  to  about  five  shillings  per 
ton  and  will  probably  increase  some  20%  in  the  next  three  to 
five  years.  The  cost  of  production  in  the  various  fields  ranges 
as  follows  (from  the  lowest  to  the  highest)  :  Jherria  Fields, 
Raniganj  Fields,  Giridih  Fields,  Central  India  and  Central 
Provinces,  The  Punjab.* 

The  present  total  output  in  India  is  about  20,000,000  tons, 
of  which  some  700,000  or  800,000  tons  are  coking  coal.  The 
output  of  coking  coal  in  the  next  few  years  should  triple  the 
present  supply. 

The  use  of  machinery  (particularly  electrical)  is  extend- 
ing very  rapidly  in  the  Indian  mines.  Electrical  machinery 
is  used  largely  at  present  for  hauling  and  pumping.  Me- 


*Bengal,  Bihar  and  Orissa  are  undoubtedly  the  largest  coal  producing 
areas. 

21 


chanical  coal  cutters  and  the  most  modern  machinery  is  now 
beginning  to  be  used  in  some  of  the  collieries,  particularly 
where  the  seams  are  narrow  and  remote  from  the  surface. 

All  Indian  coal  varies  in  quality  to  a  greater  degree  than 
English  coals.  The  seams  are  usually  thick,  some  7  to  20 
feet  being  a  common  thickness ;  the  dip  is  usually  1  in  5 ;  the 
roofs  are  good  and  water  troubles  normal.  The  general  method 
of  working  is  bored  and  pillar.  The  washing  of  inferior  coal 
is  now  under  investigation. 

An  average  analysis  of  good  Indian  coke  shows : 

Moisture 3%  to    5% 

Ash   19%  to  21% 

Volatiles   2%  to    3% 

Fixed  Carbon  76%  to  77% 

While  there  are  some  by-product  coke  ovens  in  India 
the  extraction  of  Benzol  has  not  yet  been  introduced. 

*(B)     MICA.     The  chief  Mica  Mines  in  India  are: 


Mostly  in  the  following  dis- 
tricts : 

Nellore  (Madras  Presiden- 
cy), Bihar,  Orissa  and  Amjer- 
Merwara. 


The  Mica  mined  in  India  belongs  entirely  to  the  Mus- 
covite variety.  The  main  types  of  Mica  mined  in  India  and 
consumed  in  various  countries  in  the  world  to  which  India 
sends  her  Mica,  are  the  following:  Ruby  Clear,  Ruby  fair 
stained,  Ruby  stained,  Black  spotted,  Special  and  Ordinary 
Splittings  No.  1  to  No.  6,  and  Block  Mica  from  No.  6  up  to 
special.  The  Mica  Mines  and  the  industry  in  general  are 

*Based  on  Archibald  A.  C.  Dickson's  "Mica  Miners'  and  Prospectors' 
Guide." 

22 


Alukdeah 

Ganwan 

Taraghatty 

Dhanwar 

Charki 

Sauka 

Pipraghat 

Kharonia 

Dhab 

Kararia 

Mine  326 

Kushana 

Basron  No.  1 

Meghatory 

Basron  No.  2 

Kodarma 

Sootea 

Chatkari 

handled  by  a  very  few  syndicates,  probably  not  more  than  6 
or  8  in  all  India. 

DRILLING:  Air  compressors  are  more  suited  to  mine 
with  than  steam.  Hand-drilling  is  still  in  favor  with  the  op- 
erators, though  the  double-handed  drills  are  becoming  more 
numerous.  Recently  labour-saving  devices  have  come  in,  par- 
ticularly for  the  raising  of  rock  and  water  from  the  mines. 
The  double-acting  pumps  are  usually  used  for  all  shallow 
unwatering  at  a  depth  up  to  30  feet.  Semi-rotary  pumps  are 
good  for  prospecting  work,  but  are  not  successful  in  many  of 
the  mines,  due  to  careless  handling,  etc. 

For  deep  mining  some  form  of  horizontal  steam  sinking 
pump  has  been  found  best  (the  Pulsometer  type).  Siphon 
draining  is  sometimes  used,  but  not  over  a  crest  above  21 
feet.  Mica  mines  are  left  to  ventilate  themselves  unless  they 
become  uncomfortably  hot,  in  which  case  shafts  are  put  in 
from  necessity.  Lighting  is  done  by  candles,  which  have 
proved  the  most  efficient. 

(C)  CHROME  AND  MANGANESE  ORE.  Most  of  the 
Chrome  and  Manganese  Ore  deposits  in  India  are  found  in 
the  following  districts:  Central  Provinces,  Madras  Presi- 
dency (Bangalore),  Mysore. 

India  supplies  more  of  these  ores  than  any  other  country 
in  the  world,  with  most  of  her  production  coming  from  the 
Central  Provinces.  The  principal  considerations  in  the  pur- 
chasing of  these  ores  are  the  Chrome  content,  the  Alumina 
content,  the  Iron  content  and  the  Iron  Oxide  content.  The 
general  market  buys  Chrome  Ore  48%  or  over,  with  6% 
Silica.  Others  like  the  ore  to  be  50%  with  not  more  than 
4%  Silica.  It  must  have  a  low  iron  content.  Most  of  this 
type  of  ore  is  shipped  from  the  ports  of  Madras  and  Mar- 
mogoa. 

Sampling  and  weighing  is  generally  done  by  recognized 
assayers  and  weight  as  weighed  by  the  railroad  over  whose 
line  the  ore  is  shipped,  is  basis  for  contract.  Quotations  must 
be  C.  I.  F.  North  Atlantic  ports. 

23 


The  usual  grade  reaching  this  country  is  of  the  follow- 
ing analysis,  after  drying: 

Chromium    35.20% 

Equivalent  to  Chromium  Sesquioxide  (CRa  Oy) 51.45% 

Iron 15.70% 

Silica  (by  fusion)    4.93% 

(D)  PETROLEUM.  The  chief  sources  of  supply  of  Pe- 
troleum in  India  are  in  the  Punjab,  Baluchistan,  Assam  and 
Burma.  The  Petroleum  for  the  most  part  is  found  in  sand- 
stones and  loose-textured  substance.  It  is  chiefly  obtained  by 
boring  and  pumping.  The  Burma  fields  are  far  ahead  of  those 
in  India  proper  and  contain  in  many  cases  natural  reservoirs. 
Most  of  the  Oil  business  is  in  the  hands  of  two  Scotch  com- 
panies. The  American  Standard  rig  is  used  for  drilling,  and 
most  of  the  pumps,  engines,  tools  and  pipes  are  American 
makes,  and  many  of  the  drillers  and  field  managers  are 
Americans. 


24 


5. 

LABOUR. 

*Its  Efficiency,  Sources,  and  Wages. 


(A)     GENERAL,  CHARACTERISTICS. 
(For  Indian  Currency,  See  Page  80.) 

1.  The  peasants  are  industrious  and  patient,  particularly  in 
Bihar;  they  are  steady,  diligent  and  self-reliant. 

2.  In  Bengal  and  Assam  they  are  languid  and  fond  of  rest. 

3.  In  Bombay  and  Upper  India  they  are  strong  and  hard- 
working. 

4.  They  are  dishonest  in  matters  of  cheating  and  pilfering 
stores. 

5.  They  are  free  from  drunkenness  and  gambling. 

6.  They  are  not  reliable,  and  follow  no  regular  standard 
of  good  workmanship. 

7.  They  cannot  be  left  to  themselves  and  be  trusted  to  work 
hard  or  to  take  care  of  their  tools  and  materials. 

8.  They  have  no  desire  for  wealth,  no  ambition  to  rise  by 
superior  exertion  to  a  higher  scale,  or  no  pride  in  their 
work. 

9.  They  lack  originality  or  initiative. 

10.  Most  of  the  efficient  labor  is  drawn  from  the  cooler,  drier 
climates  in  the  North. 

11.  The  result  is,  though  cheap  in  wages,  in  the  long  run  the 
expense  is  great  and  the  cost  of  supervision  tremendous. 

12.  They  are,  however,  more  passive  and  docile  and  less  apt 
to  strike — until  recently. 


*Based  on   Sarkar,  4th   Edition,  and   Sir  John   Strachey  and   Thomas 
Ainscough,  O.  B.  E. 

25 


13. 


When  they  do  strike  their  strikes  are  badly  planned  and 
cause  great  loss  to  themselves  and  their  employers. 

*(B)     WAGES.     (January,  1919.) 

1.     COTTON  INDUSTRY. 
(Rate  per  Month  in  Rupees.) 


Card  Room. 


Reeling  Room. 


Scutchers, 

13.5 

iteeler, 

1U    —  1Z 

Grinders, 
Card  Tenders, 

16. 
12. 

Bundling 

Room. 

Lap  Carriers, 

12. 

Presser, 

19   —20 

Fly  Carriers, 

9.5 

Dresser, 

16 

Sweepers, 

8. 

Sizing 

Dept. 

Drawer, 

15   —20 

Winder, 

9.5—17 

Slubber, 

16   —22 

Drawer, 

20   —35 

Intermediate, 
Eover, 

16   —22 
16   —23 

Warpers, 
Sizer, 

25   —38 
38   —55 

Spare  Hands, 

13.5 

Back  Sizer, 

17   —25 

Doffer, 

11.5—12 

Eeachers, 

10   —16 

Ring  Throstle  Room. 

Side  Minders,  15.5 

Doffer,  11.5 

Doff  Carrier,  13 


Weaving  Dept. 
Weaver,  18   —60 

Jobber,  45   —75 

Folder  and  Bundler,  14   —18 


2.    WOOL  INDUSTRY.     (Cawnpore.) 
(Rate  per  Month  in  Rupees.) 


Mule  Room. 


Card  Room. 


Head  Mistry, 
Minders, 
Piecer, 
Spare  Hands, 


70.20 

15.19 

7.61 

9.02 


Head  Mistry, 

Feeder, 

Mixer, 

Card  Cleaner, 

Spare  Hands, 


44.89* 
10.43 

9.49 
18.96 

9.83 


^Extract  from  Report  of  Thomas  Ainscough,  O.  B.  E.,  on  Trade  with 
India,  1919. 

26 


Finishing  Dept. 
Washing  and  Bleaching 

Mistry,  30.06 

Washing  and  Bleaching 


Man, 

Dyeing  Mistry, 
Dyer, 

Finishing  Mistry, 
Finishing  Man, 


Weaving  Dept. 


Mistry, 
Healer, 
Weaver, 


9.43 
19.50 

9.75 
40.62 

9.07 


28. 

12.60 

15.51 


Engineering  Dept. 
Boiler  Mistry, 
Engine  Man, 
Oilman, 

Head  Carpenters, 
Boiler  Man, 
Carpenters, 
Blacksmith, 
Fitter, 
Turner, 
Tinsmith, 
Mochi, 


25.19 

39 

10.19 

60.94 

14.81 

16.80 

26.47 

20.77 

27.25 

18.65 

11.11 


3.     COAL  MINING.       (Bengal,  1919.) 
(Rate  in  Rupees  per  Day.) 


Raniganj. 
Miners,  .4 

Blacksmiths,       .4 


Sanatoria. 
Miners  .45 

Blacksmiths,       .5 


Sodepur. 

Miners  .45 

Blacksmiths,       .5 


4.     TEA  INDUSTRY.     (Assam,  1919.) 
(Rate  in  Rupees  per  Month.) 


Active  Labourers. 
Men,  8.1.6  R.  A.  P. 

Women,  7.9.5  R.  A.  P. 


Non-Active  Coolies. 
Men,  6.  4.3  R.  A.  P. 

Women,  5.  1.2  R.  A.  P. 

Children,         2.13.5  R.  A.  P. 


5.     JUTE  INDUSTRY.       (Bengal,  1919.) 
(Rate  in  Rupees  per  Week.) 

Carding    2.18 

Rovers    4.25 

Spinners   3.75 

Shifters   1.65 

Winders    4.55 

27 


Beamers    5.49 

Mistries    4.09 

Coolies    1.88 

6.     LOCOMOTIVE  AND  ENGINEERING  WORKSHOPS. 

1919. 
(Rate  in  Rupees  per  Day.) 

LAHORE.  MEERUT. 

Skilled  Labour.  Skilled  Labour,  .5 

Fitters,  1.13     Unskilled  Labour,  .31 

Carpenters,  1.37 

Unskilled  Labour,  .55 

7.     LEATHER  INDUSTRY.     (Cawnpore,   1919.) 
(Rate  in  Rupees  per  Month.) 

Foreman 32. 

Fitters 20. 

Machine  Operatives 25.3 

Accoutrement  Makers  22. 

Saddlers   27.5 

Saddlers'  Assistants    13.4 

Work  Distributors  11. 

Belt  Makers    11.1 

Cutters    12. 

Curriers 12. 

Storeman   9. 

Tanners    10. 

Messengers   8. 

8.    PAPER  INDUSTRY.     (Bengal,  1919.) 
(Rate  in  Rupees  per  Month.) 

Coolies 12. 

Machinemen  27. 

Bricklayers    16. 

Vicemen    30. 

28 


Women 7. 

Blacksmiths    28. 

Carpenters 20. 

Enginemen   15. 

9.    BREWING  INDUSTRY.       (Punjab,  1919.) 
(Rate  in  Rupees  per  Month.) 

Head  Coopers 35. 

Coopers  23. 

Smiths 28. 

Masons    23.67 

Coolies  (Light  Work)   11. 

Coolies  (Heavy  Work) 12. 

Head  Maltman 15. 

Maltmen    (Coolies)    11. 

10.    RICE  INDUSTRY.     (Rangoon,  1919.) 
(Rate  in  Rupees  per  Month.) 

Head  Blacksmith   50. 

Fitters    55. 

Carpenters 70. 

Engine  Driver   55. 

Turner    50. 

Mill  Tindal 75. 

Stone  Mistry 40. 

Mill  Coolies 14. 

(C)     WAGES  OTHER  THAN  INDUSTRIAL. 

1.  Indian  labourers,  outside  of  industrial  plants,  are  usually 
working  for  their  own  account. 

2.  A  farm  labourer  usually  gets  from  his  master  free  meals, 
lodging,  and  a  certain  fixed  portion  of  grain.     He  occa- 
sionally gets  a  small  gift  of  a  piece  of  cloth  or  something 
else. 

3.  Frequently  in  Bengal  a  cash  wage  is  paid  in  addition  to 
free  meals. 

29 


4.  Village  artisans  and  domestic  servants  are  paid  generally 
in  kind. 

5.  Wage  rates  vary  greatly  in  different  parts  of  the  country. 

6.  The  labour  supply,  in  general,  is  far  below  the  demand, 
due  chiefly  to  extensions  of  railways  and  canals;  the  re- 
cent industrial  boom  causing  increase  in  mills,  mines  and 
factories;   Bubonic  plague   prior  to   1911;   and  general 
mortality  due  to  tropical  fevers  and  sickness. 

7.  Wages  of  domestic  servants  and  some  office  employees 
have  recently  undergone  an  increase  of  about  50% — their 
fees,  however,  are  still  very  small.* 

t  (D)  HOURS  AND  CONDITIONS  ABOUT  PLANTS. 

1.  Hours  of  employment  in  factories  are  limited  to  12  per 
day  in  case  of  men,  11  in  case  of  women  and  6  in  case  of 
children.    No  child  shall  be  employed  without  certificate 
of  age  and  physical  fitness. 

2.  Some  mills  are  reducing  these  hours  with  advantage. 

3.  Indian  labourers,  as  a  rule,  prefer  a  longer  stretch  of 
light  work  rather  than  shorter  hours  of  harder  work. 

4.  Absentees  in  Indian  factories  generally  average  per  day 
about  10%  of  the  strength  (particularly  during  harvest 
time). 

5.  Working  hours  in  textile  factories,  applying  in  some  re- 
spects to  other  plants,  are  generally  from  5.30  A.  M.  to 
7.00  P.  M.,  with  one-half  hour  allowed  every  six  hours 
for  rest  and  a  full  holiday  once  a  week.    Frequent  inter- 
ruptions occur  in  work,  due  to  religious  holidays  and  local 
events. 

6.  Housing  conditions  in  Bombay  for  labour  are  very  bad. 
Mill  hands  live  in  chawls  (buildings  divided  into  stalls 
or  single  rooms)  ;  they  are  generally  several  stories  high — 
very  unsanitary  and  overcrowded. 


*A  further  discussion  of  domestic  servants  and  household  expenses  is 

contained  in  Chapter  XIV. 
tBased  on  Indian  Factories  Act — 1911. 

30 


7.  General  conditions  about  plants  vary  in  different  parts 
of  India.     Some  are  absolutely  up  to  date,  and  all  care 
taken  for  health,  education  and  recreation  of  employees. 

8.  Education  in  general,  of  plant  hands,  is  taking  rapid 
strides ;  with  the  idea  of  eventually  having  native  skilled 
labour  to  draw  on  from  one  generation  to  another. 


31 


6. 

*CONSIDERATIONS  CONTINGENT  ON  ERECTING 
PLANT  IN  INDIA. 


1.  Cost   of   mill   erection   in   India   is   approximately 
double  that  of  similar  erection  in  this  country. 

2.  Cost  of  repairing  and  replacing  machinery  is  very 
heavy. 

3.  Capital  has  to  be  raised  at  a  higher  rate  of  interest 
in  India — frequently  50%  higher. 

4.  Labour,   though  initially  cheaper,  is  far  less  effi- 
cient, and,  in  the  end,  possibly  more  costly  or  as  great. 

5.  Attendance  and  sources  of  labour  supply  are  gen- 
erally bad. 

6.  Borrowed    money    for    building    purposes    usually 
costs  from  1%  to  10%  per  annum. 

7.  The  manufacture  of  an  article  must  frequently  in- 
clude all  phases  and  accessories  from  raw  material  to  finished 
article,  including  packing  boxes,  cases  or  cartons,  etc. 

8.  Though  India  offers  a  splendid  opportunity  for  the 
investment  of  foreign  capital  (as  a  local  market),  it  is  a  poor 
distributing  point  to  other  foreign  ports. 

9.  The  climate  and  its  effect  must  be  seriously  consid- 
ered. 

10.  Probably  the  best  opportunity  for  local  manufac- 
ture lies  in  the  following  articles:  Cement,  heavy  castings, 


*Based  on  Sarkar,  4th  Edition,  and  Thomas  Ainscough's  Report,  1919. 

33 


pipes,  tubes,  structural  steel,  cotton  and  jute  mill  machinery, 
rubber  machinery,  machine  tools,  sugar  plants,  water  works 
plants,  railway  equipment,  rolling  stock  and  small  pumps ;  in 
general,  any  article  for  the  finished  product  of  which  there  is 
a  continual  and  large  demand  in  India,  where  the  raw  ma- 
terials are  close  at  hand  and  where  freight  rates  form  an  im- 
portant percentage  of  cost. 

11.     Taxation  is  very  moderate. 


34 


7. 
INDIAN  CURRENCY. 

(For  Currency  Values,  Weights  and  Measures,  See  Currency  Tables  on 

Page  80.) 


In  1899  an  Act  was  passed,  declaring  English,  gold  coin 
should  be  legal  tender  in  India  at  the  rate  of  one  sovereign 
for  15  rupees,  and  that  the  Indian  mints  should  be  open  to 
the  free  coinage  of  silver  to  the  public.  The  present  currency 
system  is,  roughly,  as  follows:  The  metallic  currency  of 
India,  in  ordinary  use  by  the  people,  is  a  silver  token  currency 
of  enormous  magnitude.  yGold  is  the  standard  value,  but  sil- 
ver is  a  legal  tender  to  an  unlimited  amount,  The  system  in 
force  is  somewhat  similar  to  the  principle  which  has  prevailed 
for  many  years  in  France.  Speaking  generally,  one  might 
say  India  was  internally  on  a  silver  basis  and  externally  on  a 
gold  basis.  The  profits  on  the  coinage  of  silver  are  necessarily 
large ;  they  are  not  treated  as  revenue,  but  are  held  as  a  spe- 
cial gold  standard  reserve,  available  for  the  maintenance  of 
exchange,  and  they  are,  for  the  most  part,  invested  in  sterling 
securities  in  England.  The  Indian  Government  coins  rupees, 
not  for  the  sake  of  additional  profits,  but  in  response  to  an 
effective  trade  demand.  The  intention  of  the  Government  is 
to  secure  in  the  currency  reserve  and  gold  standard  reserve, 
combined,  about  25  millions  in  gold  and  gold  securities.  This 
stock  of  gold  is  thought  to  be  sufficient  to  maintain  the  ex- 
change basis  of  the  Indian  currency  system.  One  method  of 
increasing  the  gold  standard  reserve  is  by  using  the  gold  it 
receives  from  merchants,  to  buy  silver  and  coin  rupees,  the 
profit  from  coining  rupees  to  be  turned  into  the  gold  standard 

35 


reserve.  Before  coinage  is  resorted  to,  however,  the  Govern- 
ment substitutes  sovereigns  or  gold  securities  for  rupees  as 
far  as  is  prudent,  in  the  reserve  held  against  the  note  issues. 

Many  diverse  opinions  are  constantly  being  heard  in  re- 
gard to  a  new  standardization  of  the  rupee  value.  No  action 
has  been  taken  as  yet.  However,  this  matter  should  be  closely 
watched,  as  probably  in  the  near  future  certain  currency 
and  financial  legislation  may  be  effected,  the  influence  of 
which  will  be  broadly  felt  in  trade. 


36 


8. 
INDIAN  RAILWAYS. 


Generally  speaking,  the  railways  in  India,  which  are 
managed  by  companies,  have  Boards  of  Directors  in  London, 
and  are  represented  in  India  by  an  Agent,  assisted  by  a  Traf- 
fic Manager,  Chief  Engineer,  Locomotive  Superintendent,  a 
Storekeeper,  Police  Superintendent  (appointed  by  Govern- 
ment), and  an  Auditor.  The  Native  State  Railways  are  or- 
ganized in  much  the  same  way. 

The  total  length  of  railway  lines  open  to  traffic  in  1918 
in  India  was  36,333  miles,  of  which  17,876  miles  were  stan- 
dard gauge  (5'  6"),  14,989  miles  were  the  meter  gauge  (3' 
3-3/8"),  and  3,468  miles  were  the  narrow  gauge  (2'  6"  and 
2'  0").  The  present  mileage  open  to  traffic  is  some  37,500 
miles  to  38,000  miles. 

There  are  some  70  locomotive,  carriage  building  and  re- 
pair shops  in  India,  employing  about  115,000  hands.  Much 
of  the  active  management  and  supervision  of  the  railways  in 
India  is  by  a  Railway  Board  with  headquarters  at  Simla  in 
the  spring  and  summer,  and  at  Calcutta  in  the  winter.  After 
the  completion  of  the  new  Capitol  at  Delhi  the  Railway 
Board's  headquarters  will  probably  be  there. 

The  general  administration  of  the  railways  is  under  the 
following  departments: 

1.  Railway  Establishments. 

2.  Railway  Construction. 

3.  Railway  Traffic. 

4.  Railway  Projects. 

5.  Railway  Stores. 

6.  Railway  Statistics. 

37 


7.  Railway  Drawing  Branch. 

8.  Railway  Audit  and  Accounts. 

Most  of  the  purchases  for  Indian  Railway  Requirements 
are  made  in  England  or  are  supplied  by  the  local  Government 
shops. 

Corridor  trains  are  rare  in  India  and  the  construction 
of  first  and  second  class  carriages  is  the  4-berthed  compart- 
ment method,  which  are  roomy  and  comfortable,  though  not 
ornate.  The  roofs  are  carefully  made  sun-proof,  and  special 
windows  of  dark  glass  and  blinds  are  used  to  lessen  the  sun's 
glare.  Electric  lights  and  fans  are  generally  used.  The  use 
of  corridor  trains  will  probably  become  more  general  in  a  few 
years. 

India's  chief  railways,  their  mileage  and  districts  served: 


NAME 
East  Indian  Ry. 


Bengal  Nagpur 
R.  R. 


Bombay,  Baroda 
&  C.  I.  R.  R. 


INDIAN 
HEADQUARTERS   DISTRICTS  SERVED          MILEAGE  GAUGE 

Calcutta  Southern    Punjab 

United  Provinces  2,806          5.6       foot 

Bihar 

Western  Bengal 


Calcutta 


Bombay 


Central  Provinces  (East) 

Bihar,  Orissa  3,122    ^-5.6       foot 

Part  of  Madras  ^-2.6       foot 


Northern  Half  Bombay 

Presidency 
Central  India 
South  Rajputana 


Bengal  &  North- 
western R.  R. 

Gorakhpur 

Northern  U.  P. 
Bihar 

Assam-Bengal 
R.  R. 

Chittagong 

Province  of  Assam 

Great  Indian  Pe- 
ninsula 

Bombay 

United  Provinces  —  I 
Central  Bombay  Pre 

997 
1,827 
2,053 

1,045 


5.6  foot 
meter 
meter 

meter 
5.6       foot 


Northwestern  Ry.    Lahore 


Hyderabad 

Central  Provinces — West 

Central  India 

Part  of  Rajputana 

Sind 

Punjab 

Northwest  Frontier  Prov. 

Baluchistan 

38 


5,694 


5.6       foot 


NAME 

Madras  &  South- 
ern Mahratta 


Burma  Railway 

Nizam's   State 
R.  R. 

Eastern  Bengal 
R.  R. 


Oudh  &  Rohilik- 
hand  R.  R. 

Southern  Indian 
R.  R. 


INDIAN 

HEADQUARTERS   DISTRICTS  SERVED 

Madras  Madras  Presidency 

Part  of  Hyderabad 
Part  of  Bombay 
Part  of  Mysore 


MILEAGE 
3,171 


GAUGE 

3.3-3/8  foot 
5.6       foot 


Rangoon 
Secunderabad 

Calcutta 


Lucknow, 
U.  P. 

Trichinopoly 


Upper  and  Lower  Burma   1,633 
State  of  Hyderabad  910 


3.3-3/8  foot 

foot 
foot 

5.6       foot 


Eastern  Bengal  2,812 

Northwestern  Assam 
Northern  Gangetic  Plain 

Central  and  Eastern  1,638          5.6       foot 

|  United  Provinces 

I  Whole  of  Southern  India  1,953    2/3-3.3-3/&  foot 

H-5.6       foot 


SCHEDULE  OF  MINIMUM  CLEARANCES  FOR  INDIAN 
RAILWAYS.* 

5  ft.  6  in.  Gauge. 

(A)  Minimum  horizontal  distance,  from  center  of  track 
to  any  structure,  except  a  platform,  from  1  ft.  above  rail  level 
to  11  ft.  6  in.  above  rail  level  is  7  ft.  0  in. 

(B)  Minimum   height   above   rail   level,   at   center  of 
track  for  over-bridges  or  overhead  bracing  out  of  stations  is 
14  ft.  6  in.    On  important  lines  is  16  ft.  6  in. 

(C)  Minimum   height   above   rail   level   for   telegraph 
wires  crossing  the  line  is  20  ft.  0  in. 

(D)  Minimum  height  above  rail  level   at  center,  for 
tunnels  on  single  line  is  19  feet.  0  in.    Width  at  rail  level  is 
13  ft.  0  in.    At  7  ft.  3  in.  above  rail  level  is  17  ft.  0  in. 

(E)  Minimum  height  above  rail  level  at  center  for  tun- 
nel on  double  line  is  20  ft.  9  in. 

Minimum  width  at  rail  level  is  26  ft.  6  in. 

Minimum  width  at  6  ft.  0  in.  above  rail  level  is  29  ft.  6  in. 


'Extract  Circular  No.  1820— R.  C.  Indian  Railway  Board. 

39 


2  ft.  6  in.  Gauge. 

(A)  Minimum  horizontal  distance  from  center  of  track 
to  any  structure,  except  a  platform,  from  rail  level  to  9  ft. 
6  in.  above  rail  level  is  6  ft.  0  in. 

(B)  Minimum  height  above  rail  level  at  center  of  track, 
for  over-bridge  or  overhead  bracing  out  of  stations  is  12  ft. 
6  in. 

(C)  Minimum  height  above  rail  level  for  telegraph  wires 
crossing  the  line  is  20  ft.  0  in. 

(D)  Minimum  height  above   rail  level  at   center,   for 
tunnels  on  single  line  is  15  ft.  0  in. 

Minimum  width  at  9  in.  above  rail  level  is  12  ft.  0  in. 
Minimum  width  at  5  ft.  0  in.  above  rail  level  is  13  ft.  0  in. 

Meter  Gauge. 

(A)  Minimum  horizontal  distance,  from  center  of  track 
to  any  structure,  from  rail  level  to  1  foot  above  rail  level  is 
4  ft.  5  in. 

(B)  Minimum  horizontal  distance,  from  center  of  track 
to  any  structure,  except  a  platform,  from  1  foot  above  rail 
level  to  10  ft.  6  in.  above  rail  level  is  6  ft.  3  in. 

On  important  lines  is  6  ft.  10  in. 

(C)  Minimum  height  above  rail  level,  at  center  of  track, 
for  over-bridges  or  overhead  bracings  out  of  stations  is  12  ft. 
6  in. 

(D)  Minimum  height   above   rail   for  telegraph  wires 
crossing  the  line  is  20  ft.  0  in. 

(E)  Minimum  height  above  rail  level  at  center  for  tun- 
nels on  a  single  line  is  19  ft.  0  in. 

Minimum  width  at  rail  level  is  13  ft.  0  in. 

Minimum  width  at  7  ft.  3  in.  above  rail  level  is  17  ft.  0  in. 

(F)  Minimum  height  above  rail  level  at  center  for  tun- 
nels on  a  double  line  is  20  ft.  9  in. 

Minimum  width  at  rail  level  is  26  ft.  6  in. 
Minimum  width  6  ft.  0  in.  above  rail  level  is  29  ft.  6  in. 

40 


9. 


COMMERCIAL  CENTERS  OF  INDIA. 


CITIES    POPULATION 
Calcutta     1,300,000 


CHIEF  INDUSTRIES  AND  TRADE 

Chief  Port  and  Commercial  City,  Rice 
Mills,  Jute,  Coal  Mines  and  Ore  Mines 
in  Provinces  and  localities  nearby. 


Bombay  1,100,000  India's  Western  Gateway,  Cotton,  Grain, 
Oilseeds,  Goatskins,  Manganese  Ore  and 
Yarn. 


Madras  600,000 

Karachi  *  175,000 

Cawnpore  180,000 

Delhi  240,000 


Cotton,  Tobacco,  Skins,  Drugs,  Spices. 

Grain,  Raw  Cotton,  Hides,  Skins,  Wheat, 
Barley. 

Leather  Goods,  Woolen  Goods,  Cotton 
and  Tents,  Flour  Mills,  Iron  Foundries 
and  Chemical  Works. 


Native  Industries,  Silversmiths,  Lace 
Works,  Copper  and  Brass  Work,  Pot- 
tery and  Embroidery. 

Lahore  230,000    Agricultural   Implements,    Silk   Goods, 

Lacquered  Ware,  Soap,  Nitric  and  Sul- 
phuric Acids  and  Vegetable  Oils. 

Gold  and  Silver  Brocade,  Glass  Works, 
Perfumes,  Cotton  Fabrics,  Railway 
Shops  and  an  Educational  Center. 

Rice,    Timber,    Oil,    Gold,    Ivory    and 
Wood  Carving. 
43 


Lucknow       270,000 
Rangoon        300,000 


Agra  190,000    Cotton  Goods,  Carpets  and  Flour. 

Benares         225,000    Holy  City  of  India. 

Amritsar        160,000   Brass  Work,  Ivory  and  Wood  Carving, 
Cotton,  Cloths  and  Carpets. 

Jaipur  140,000    Pottery     and     Brass     Work,     Dyeing, 

Marble  Carving,  Enameling  on  Gold. 

Allahabad      175,000   Printing. 

Poona  160,000   Agriculture,   Cotton,  Paper  and  Flour 

Mills. 

Bangalore      190,000   Carpets,   Cotton,  Wool   and  Tanneries, 
Manganese  and  Chrome  Ore  Mines. 

Hyderabad    500,000   Agriculture,  Cotton  Piece  Goods,  Hard- 
ware. 

Patna  135,000  Soap,    Rose   Attar,    Carpets,   Brocades, 

Boots  and  Shoes. 
Second   Commercial  Center  of  Bengal. 


44 


10. 

INDUSTRIAL  AND  COMMERCIAL  ESTABLISHMENTS 

IN  INDIA. 


(A)     COMMERCIAL  ESTABLISHMENTS  IN  CHIEF  SEAPORTS. 


Calcutta  Bombay  Madras  Karachi  Rangoon 
20          10          16          10          15 

15  10  5  3  14 

*10  1  1  0  2 

15  17  19  5  3 

27  30  25  20  5 


10 
12 


7 

6 

'Bengal. 


25 


15 

25 

5 

2 

3 

10 

6 

3 

1 

2 

8 

7 

1 

1 

1 

12 

15 

3 

2 

4 

15 

7 

3 

0 

0 

12 

6 

20 

10 

0 

Engineering    Companies. 
Contractors  and  Builders. 
Shipbuilding  Firms. 
Hardware  Dealers. 
Motor  Car  and  Accessory 
Dealers. 

Leather  Goods  Dealers. 
Jewelers,    Clock   and 
Watch   Dealers. 
Electrical  Stores. 
Rope  and  Canvas  Dealers 
Rubber  Merchants. 
Stationers. 
Timber  Dealers. 
Exporters  of   Hides   and 
Skins. 

Dealers  in  Dyes  and  Dye- 
stuffs. 

Dealers    in    Paints    and 
Varnishes. 

Dealers    in    Agricultural 
Machinery. 


45 


(In  almost  all  cases  there  are  many  more  firms,  though 
of  comparatively  small  size  and  financial  means.) 

Other  than  those  mentioned  there  are  also  15  importers 
of  Mining  Machinery  and  Supplies  in  Burma,  10  principal 
mines  and  mining  companies,  12  oil  well  companies,  18  saw- 
mill and  lumber  firms  and  8  importers  of  Iron  and  Steel. 


NOTE.— Exporters  should  note  that  the  town  of  Karacki  is  commercially 
of  considerable  importance  in  relation  to  trade  with  Afghanistan  and 
Baluchistan,  for  which  this  and  Peshawar  in  a  lesser  degree — is  the 
natural  outlet  and  inlet. 

(B)  INDUSTRIAL  ESTABLISHMENTS  IN  INDIA. 

Coal  Mines;  some  400 (Companies)  150 

Tea  Companies 

Railway,  Tramway  and  Steamship  Transit  Companies,  75 

Iron  and  Steel  Works 

Sawmills    .-. 12' 

Sugar  Factories    

Shipbuilders    

Ice  Factories   

Match  Factories   .•_ 

Chemical  Works   36 

Dairies 75 

Jute  Mills 

Cotton  Mills    275 

Cotton  Ginning  and  Pressing  Factories 1,600 

Eailway  and  Tramway  Workshops 95 

Rice   Mills 550 

Tanneries    335 

Paper  Mills 

Stone  Works    45 

Woolen  Mills  20 

Tobacco   Factories 14 

Rubber  Works  59 

Petroleum  Refineries 7 

Kerosene  Tinning  Works   20 

Jute  Presses 125 

Engineering  Workshops    161 

46 


Printing  Presses   ... 145 

Electric  Light  Plants 30 

Tile  and  Brick  Factories   182 

Dockyards  and  Port  Trust  Works 15 

Ammunition   Plants 17 

With  some  500  others  employing  about  1%  million  em- 
ployees   500 

(C)       *GENERAL  DISTRIBUTION  OP  FACTORIES. 

Cotton  and  Gin  Presses  mostly  in  Central  Provinces  and 
Bombay. 

Cotton  Mills  mostly  in  Bombay,  Madras  and  Central 
Provinces. 

Jute  Mills  and  Presses  and  Silk  Filatures  in  Bengal. 

Flour  Mills  in  United  Provinces  and  Punjab. 

Sugar  Factories  in  United  Provinces. 

Rice  Mills,  Sawmills  and  Petroleum  Refineries  mostly  in 
Burma. 

Iron  and  Brass  Foundries  in  Bengal  and  Bombay. 

(D)     TYPES  OF  INDUSTRIES  FINANCED  AND  RUN  BY  EUROPEANS 
AND  NATIVES. 

Those  almost  exclusively  under  European  capital  are: 
Railways. 

Tramways  and  Light  Railways  Registered  in  India. 
Jute  Mills. 
Gold  Mines. 
Woolen  Mills. 
Paper  Mills. 
Breweries. 

Those  largely  under  European  capital  are: 
Coal  Mines. 
Petroleum  Refineries. 
Tea  Plantations. 
Banks. 
Rice  Husking  Mills. 


*Sarkar,  4th  Edition. 

47 


Saw  and  Timber  Mills. 

Flour  MiUs. 

Sugar  Factories. 

Iron  and  Brass  Foundries. 

Indigo  Factories. 

Those  mainly  financed  by  European  capital  are 
Cotton  Mills. 
Ice  Factories. 
Cotton  Gins  and  Presses. 
Jute  Presses. 
Printing  Presses. 


48 


11. 

THE  INDIAN  COMMODITY  MARKET :    DEMAND  AND 
COMPETITION. 


(A)    COMMODITIES  INDIA  MUST  BUY  IN  ORDER  OF  IMPORTANCE. 

Textile  Cotton — Piece  Goods. 

Machinery  and  Typewriters. 

Sugar. 

Metals. 

Railway  Plant  and  Rolling  Stock. 

Instruments  and  Electrical  Equipment. 

Hardware  and  Agricultural  Implements  and  Motor  Cars 
and  Cycles. 

Oils — excluding  Kerosene. 

Salt. 

Liquors,  including  Perfumed  Spirits. 

Building  and  Engineering  Materials  and  Belting. 

Glass  and  Glassware. 

Kerosene  Oil. 

Spices. 

Paper  and  Pasteboard. 

Chemicals  and  Chemical  Preparations. 

Drugs  and  Medicines. 

Besides  these  come  Cement,  Jewelry,  Umbrellas,  Earthen- 
ware, Rubber  Goods,  Condensed  Milk,  etc.,  all  in  considerable 
volume. 

(B)     CONSUMER  DEMAND. 

American  and  European  Colony,  Merchants,  Military 
Men,  Civil  Employees,  Indian  Princes  and  Nobility,  Indian 
large  Land  Owners,  Indian  Merchants,  Government  and  State 
Railway  Contractors,  Factories  and  Port  Improvement  Works. 

49 


These  consumers  patronize  the  large  department  stores  and 
import  houses,  and  purchase,  for  the  most  part,  the  same  type 
of  articles,  as  a  corresponding  community  in  this  country 
would  buy. 

The  native  population,  with  a  very  small  purchasing 
power  per  capita,  require  commodities  within  their  means  and 
deal  almost  entirely  through  the  Bazaars,  where  cheapness 
and  gaudiness  are  of  far  greater  importance  than  quality. 
American  manufacturers  will  find,  however,  that  once  their 
article  has  become  popular  with  the  great  native  population, 
the  sales  and  collective  profits  will  be  enormous. 

*(C)    COMPETITION  MET  IN  EACH  CLASS  OF  GOODS. 
MOTOR  CARS  AND  MOTOR  CYCLES. 

American  medium-priced  and  cheap  cars  have  obtained 
a  footing  more  or  less  permanent.  There  should  be  an  ex- 
cellent demand  in  India  at  all  times  for  pleasure  cars,  motor 
trucks,  parts  and  accessories.  The  preference  among  both 
Europeans  and  Indians  is  for  the,  British  make  of  fair  and 
medium-priced  cars;  at  all  times  a  splendid  opening  for  a 
car  priced  from  $800  to  $1,200.  Spare  parts  should  be  stocked 
by  dealers.  They  frequently  carry  from  $50,000  to  $100,000 
worth  of  parts  in  stock  in  Calcutta  at  one  time.  Agents 
should  not  be  appointed  for  too  large  a  territory.  Main  de- 
pots can  cover  as  follows: 

CALCUTTA — Bengal,  Bihar,  Orissa,  Assam,  Burma. 

BOMBAY — Bombay  Presidency,  Karachi,  Sind,  Nagpur 
and  Central  Provinces. 

MADRAS — Madras  Presidency,  Native  States  of  Southern 
India. 

LAHORE — Punjab,  United  Provinces,  Northwestern  Fron- 
tier Provinces,  Rajputana. 

In  addition  to  these  four  main  depots  it  would  be  well 
to  appoint  agents  in  Cawnpore,  Rawalpindi,  Delhi,  Bangalore, 
Rangoon,  Secunderabad,  etc. ;  this,  provided  the  manufacturer 

^Condensed  from  Thomas  Ainscough's  Report — 1919. 

50 


is  not  absolutely  satisfied  of  the  ability  of  the  main  agents  to 
cover  these  other  centers. 

PROVISIONS. 

Most  of  this  business  is  done  by  powerful  merchant  im- 
porters at  chief  seaports,  who  act  as  caterers  to  the  railways, 
hotels  and  clubs  and  army  messes ;  supply  retail  to  European 
communities  and  wholesale  to  Bazaar  trade  for  Indian  con- 
sumption. The  chief  competitors,  by  articles,  are  as  follows: 

Ham  and  Bacon — United  Kingdom,  1st;  United  States, 
2nd,  11%. 

Butter  and  Cheese — Denmark  and  Austria  (somewhat, 
Holland,  Germany,  Belgium  and  Italy) ;  United  States,  2nd. 

Jams  and  Jellies — United  Kingdom;  United  States,  prac- 
tically none. 

Biscuits  and  Cakes — United  Kingdom,  Australia  and 
Japan ;  United  States,  practically  none. 

Cocoa  and  Chocolate — United  States,  Holland  and  United 
Kingdom. 

Patent  Foods — United  Kingdom,  United  States. 

Canned  and  Bottled  Goods — United  Kingdom,  Australia 
and  United  States. 

Condensed  and  Preserved  Milk — United  States,  United 
Kingdom,  Australia. 

Pickles,  Sauces  and  Condiments — United  Kingdom,  Aus- 
tralia, United  States,  Japan. 

CHEMICALS  AND  CHEMICAL  PREPARATIONS. 

In  general,  this  business  is  in  the  hands  of  import  mer- 
chants. There  is  good  business  done  in  soda  ash,  crystals  and 
caustic  soda,  largely  for  use  in  paper  mills,  glass  factories  and 
dyehouses.  The  competition  is  as  follows : 

Acids,  Sulphuric — Sicily,  Japan,  United  States,  practi- 
cally none. 

Bleaching  Materials — Japan,  United  Kingdom,  United 
States,  practically  none. 

51 


Soda  Compounds — United  Kingdom,  Japan,  United 
States,  practically  none. 

Sulphur — Japan,  95% ;  United  States,  practically  none. 

Carbide  of  Calcium — Previously  Germany,  United  King- 
dom, Japan,  United  States,  practically  none. 

Potassium  Compounds — United  Kingdom,  United  States, 
Japan. 

Disinfectants — United  Kingdom,  Japan. 

In  all,  the  United  States  supplies  a  total  of  11%  of 
chemicals  imported  into  India. 

DRUGS  AND  MEDICINES. 

The  United  States  holds  a  good  third  place  in  this  trade 
and  ships  largely  patent  medicines,  quinine  salts  and  miscel- 
laneous drugs.  Japan,  in  second  place,  supplies  mostly  cam- 
phor and  some  patent  medicines  of  a  very  inferior  grade. 
The  United  Kingdom,  in  first  place,  provides  most  of  the 
quinine  salts,  patent  medicines  and  chemical  requirements. 
The  greater  part  of  this  trade  is  in  the  hands  of  the  whole- 
sale European  druggists  and  chemists.  Import  firms  will  also 
take  agencies  for  this  line.  The  largest  trade,  however,  is 
handled  by  native  import  houses,  purchasing  direct  and  cater- 
ing to  the  Bazaar  trade.  Manufacturers  should  establish  their 
own  depots  and  advertise  largely,  with  traveling  salesmen 
supporting  the  advertising  program.  A  large  mail  order  busi- 
ness could  be  worked  up  by  using  the  Indian  Post  Office  sys- 
tem of  Value  Payable  Post. 

DYEING  AND  TANNING  SUBSTANCES. 

Prior  to  the  war,  this  trade  was  largely  done  with  Ger- 
many. It  is  almost  essential  in  this  business  to  open  offices 
and  laboratories  in  Bombay,  preferably  Bombay,  due  to  the 
availability  of  more  trained  chemists  and  demonstrators.  Hav- 
ing established  the  central  office,  sub-depots  throughout  India 
should  be  established.  In  cases  where  firms  are  too  small  to 
undertake  this  expense,  American  or  British  import  firms  of 
good  standing  should  be  appointed ;  even  native  firms,  if  as- 

52 


sured  of  their  standing.  The  chief  competition  is  with  the 
United  Kingdom  at  present.  The  United  States  holds  strong 
second  place. 

Alizarine  Dyes — United  Kingdom,  United  States. 

Aniline  Dyes— United  Kingdom,  United  States  and 
Japan. 

Synthetic  Dyes — United  Kingdom,  United  States  and 
Japan. 

NOTE — Japanese  Dyes  do  not  seem  to  have  great  strength 
of  color,  and  their  success  has  not  been  great. 

PAINTS  AND  PAINTERS'  MATERIALS. 

India  is  a  large  and  important  foreign  field  for  the  sale  of 
paints  and  painters'  materials.  There  are  some  local  plants 
manufacturing  paint;  but  of  a  very  inferior  quality.  India 
produces  great  quantities  of  linseed  oil  and  turpentine  and,  if 
properly  managed  by  Europeans,  a  good  local  plant  would  of- 
fer vast  opportunities.  The  present  situation  and  chief  com- 
petition is  as  follows: 

Red  and  White  Lead — United  Kingdom,  Japan,  United 
States. 

Turpentine — United  Kingdom,  United  States. 

Other  Painters'  Materials — United  Kingdom,  United 
States,  Japan. 

SOAP. 

This  trade  is  almost  exclusively  in  the  hands  of  the  Brit- 
ish and  some  local  plants.  Japan  affords,  after  the  United 
Kingdom,  probably  the  most  serious  competitor,  chiefly  in 
cheap  toilet  soaps,  floating  soaps  and,  to  some  extent,  in  house- 
hold soaps.  India  offers  a  splendid  opportunity  for  local  in- 
dustrial development  in  this  line.  All  raw  products  are  near 
at  hand  in  fresh  and  sufficient  quantities,  with  the  exception 
of  caustic  alkalis,  which  must  be  imported.  Land  rents  or 
purchase  of  land  is  quite  low,  as  is  taxation.  The  market  for 
the  goods  is  directly  at  hand.  The  difficulties,  however,  are 
with  labour  and  the  manufacturing  of  boxes  and  cartons, 
and  the  absence  of  cheap  substitutes  for  tallow. 

53 


APPAREL. 

This  trade  is  very  important  and  is  mostly  handled  by 
the  European  retail  houses,  who  carry  high  grade  articles  and 
cater  to  the  European  community;  following  this  trade,  in 
importance,  come  the  Bazaar  wholesale  and  retail  merchants 
catering  to  the  Indian  population,  and  carrying  a  cheaper 
grade  of  merchandise.  Much  of  this  business  is  done  by  sea- 
sonal visits  from  travelling  salesmen.  The  competition,  largely, 
is  as  follows : 

Drapers'  Goods  and  Uniforms — United  Kingdom  and 
Japan;  United  States,  practically  none. 

Gold  and  Silver  Thread — France   (exclusively). 

Hats,  Caps,  Bonnets — United  Kingdom,  Italy  and  Japan. 
(Italy  and  Japan,  mostly  cheaper  grade  goods.) 

Hosiery  (silk) — Japan — almost  exclusively. 

Hosiery  (cotton) — United  Kingdom  and  Japan;  United 
States,  1.9%. 

Haberdashery  and  Millinery — United  Kingdom,  Japan. 

Boots  and  Shoes  (Leather) — United  Kingdom,  Japan, 
United  States,  and  local. 

Boots  and  Shoes — United  Kingdom,  Sweden,  Japan, 
United  States,  practically  none. 

LEATHER  (Excluding  Belting). 

This  trade  is  practically  controlled  locally  and  by  the 
United  Kingdom.  Indian  army  requirements  are  manufac- 
tured at  Cawnpore,  and  high  grade  saddles  are  bought  chiefly 
from  the  United  Kingdom  and  Australia.  In  fancy  leather 
articles  the  United  Kingdom  holds  first  place ;  United  States 
second ;  and  Japan,  third. 

LEATHER  BELTING  FOR  MACHINERY. 

Local  attempts  to  manufacture  belting  have  not  proved 
successful.  The  United  Kingdom  holds  first  place ;  the  United 
States,  second  place,  and  Japan,  a  close  third.  This  business 

54 


is  constantly  growing  with  the  recent  industrial  boom  and, 
with  proper  introduction  and  a  sales  campaign,  a  very  good 
demand  should  result.  At  present,  the  British  belt  is  thought 
to  be  more  durable  and  in  some  cases  more  efficient.  This 
prejudice,  no  doubt,  can  be  overcome. 

TOBACCO. 

The  British  Empire  and  United  Kingdom  supply  a  large 
percentage  of  this  trade.  Holland  and  the  Philippines  are 
the  chief  suppliers  of  cigars.  The  demand  is  mainly  for  cheap 
cigarettes.  Well  organized  English  companies  keep  this  trade 
in  the  hands  of  the  British.  Chief  competition  would  be  the 
Imperial  Tobacco  Company,  which  has  branches  all  over  India. 

RUBBER  MANUFACTURERS. 

This  trade  consists  chiefly  of  motor  tire  shoes  and  tubes, 
followed  by  other  types  of  tubing,  toys,  surgical  appliances 
and  toilet  requisites.  The  United  Kingdom  holds  first  place ; 
with  Japan,  second,  and  the  United  States,  third,  with  about 
3%  of  the  total  trade. 

INSTRUMENTS. 
Electrical  Apparatus  and  Appliances. 

This  trade  is  the  most  important  of  all  instruments  and 
similar  equipment,  and  is  roughly  divided  as  follows :  Japan 
heads  the  list  and  supplies  largely  electric  lamps,  wires  and 
accessories.  The  United  Kingdom  comes  next,  supplying  a 
general  line,  and  the  United  States  is  third,  with  about  17% 
of  the  trade,  mostly  in  fans  and  general  accessories.  Itemized, 
the  most  popular  brands  are  as  follows : 

Lamps  and  Parts — Philips'  Dutch  Lamps,  first;  Jap- 
anese, second. 

Fans  and  Parts — American,  first ;  Italian,  second ;  United 
Kingdom,  third. 

Electric  Wire  and  Cables — United  Kingdom,  first ;  Japan, 
second. 

55 


Musical  Instruments — United  Kingdom,  first;  United 
States,  second ;  France,  third ;  Japan,  fourth. 

Optical  Instruments — United  States,  first;  United  King- 
dom, second;  Japan,  third. 

Photographic  Appliances — British,  first;  United  States, 
second. 

Surgical  Instruments— United  Kingdom,  first;  United 
States,  second;  Japan,  third. 

EARTHENWARE  AND  PORCELAIN. 

English  and  local  goods  predominate.  Japan  comes  sec- 
ond, supplying  mostly  the  Bazaar  trade. 

GLASS  AND  GLASSWARE. 

Glass  is  a  very  important  item  of  India's  trade;  the 
greater  part  of  which  consists  in  bangles,  beads  and  imitation 
trinkets.  Local  manufacture  supplies  about  one-third  of  the 
demand.  Other  sources  of  supply  are  France,  Italy  and 
Japan.  In  other  articles  such  as  tableware,  sheet  and  plate 
glass,  bottles  and  lampware  the  trade  is,  generally  speaking: 
United  Kingdom,  first ;  Japan,  second ;  Continental  countries, 
third. 

CEMENT. 

Local  manufacture  of  this  material  is  in  a  strong  position 
and  forms  the  main  competition  for  any  foreign  brand. 
British  cement  is  the  most  popular,  but  local  brands  are  con- 
tinually becoming  more  so.  There  is  a  tremendous  future  for 
this  trade.  Local  plants  will  probably  more  and  more  retain 
this  trade  in  their  own  hands. 

HARDWARE. 

This  trade,  next  to  machinery,  has  one  of  the  brightest 
futures.  Primarily,  there  is  little  to  no  local  competition  at 
present,  and  with  the  growing  industrial  boom  in  India  the 
demand  is  constantly  increasing.  The  United  Kingdom  comes 

56 


first  in  this  trade  with  the  United  States  second  and  Japan 
third.  This  trade  comprises,  roughly,  agricultural  instru- 
ments, iron  and  tin  buckets,  implements  and  tools,  metal 
lamps,  locks,  bolts,  nuts  and  enameled  ironware.  The  agri- 
cultural trade  is  best  done  through  the  Agricultural  Farms 
Implements  Depots  established  throughout  India,  and  they 
should  be  induced  to  carry  stock.  The  other  trade  is  chiefly 
done  through  the  wholesale  and  retail  houses  with  branches 
established  throughout  India.  Smaller  and  cheaper  articles 
are  dealt  with  through  the  Bazaar. 

MACHINERY.  4- 

This  trade  holds  out  the  biggest  future,  in  many  respects, 
of  all  other  commodities,  and  includes  the  following:  Elec- 
trical machinery,  machine  tools,  sewing  machines,  typewriters, 
boilers,  mining  machinery,  paper  mill  machinery,  rice  milling 
plants,  pumping  machinery  and  water  works,  sugar  plant  ma- 
chinery, sawmill  and  woodworking  machinery,  flour  mill  ma- 
chinery and  textile  machinery.  Too  careful  attention  and 
fostering  of  this  trade  cannot  be  given,  and  the  initial  ex- 
pense or  continual  overhead  of  having  efficient  men  constantly 
on  the  field  should  not  be  considered.  Service  stations,  with 
a  small  but  efficient  staff,  should  be  established  in  two  or  three 
of  the  chief  industrial  centers  and  economical  and  proper* 
erection  of  plants  should  always  be  assured.  Careful  instal- 
lation of  all  machinery  should  be  a  paramount  practice. 

At  the  present  time  many  buyers,  particularly  Parsee 
and  Indian,  are  earnestly  looking  for  American  goods.  Amer- 
ica's trade  is  continually  growing,  in  spite  of  the  practice  of 
placing  many  Government  and  private  contracts  with  London 
firms.  A  very  careful  study  of  the  conditions  and  require- 
ments of  the  country  must  be  made.  America's  greatest  op- 
portunity at  present  in  the  machinery  trade  of  India  lies  in 
the  following:  Hydro-electric  plants,  machine  tools,  oil 
crushing  and  oil  refining  machinery,  flour  mill  machinery, 
sewing  machines  and  typewriters.  General  competition  in 
these  articles  is  with  England  and  Japan. 

57 


RAILWAY  ROLLING  STOCKS  AND  PLANTS. 

Most  of  this  equipment  is  manufactured  in  the  Govern- 
ment Railway  shops  in  India  or  supplied  by  the  United  King- 
dom. No  doubt,  in  time,  the  United  States  will  gain  a  foot- 
hold in  this  trade,  but  the  development  will  necessarily  be 
slow  and  will  take  much  patience  and  the  expenditure  of  con- 
siderable money. 

(D)     A  NOTE  ON  GERMAN  AND  JAPANESE  COMPETITION. 

1.  In  referring  to  competition  of  various  articles,  no 
mention  has  been  made  of  the  Central  Powers,  such  as  Ger- 
many, Austria,  etc.    No  sound  opinion  can  be  formed  on  the 
competition  from  these   countries  until   their   finances   and 
trade  become  more  stable.    No  doubt  they  will  be  a  factor  to 
be  carefully  considered  in  a  few  years;  but  at  present  they 
need  not  generally  be  feared. 

2.  In  mentioning  Japanese  competition  it  would  be  well 
to  realize  the  very  strong  foothold  she  has  obtained  in  Indian 
trade.    It  would  be  well  also  to  remember  in  general  that  she 
is  supplying  for  the  most  part  inferior  goods  to  a  poorer  pur- 
chasing class,  at  a  cheaper  price.    In  most  articles  the  quality 
and  workmanship  cannot  be  compared  to  that  of  British  or 
American  manufacture. 

3.  America  has  successfully  competed  with  Japan  and 
Great  Britain  in  articles  in  which  formerly  Great  Britain  had 
the  monopoly  and  by  careful  attention  to  the  buyers'  need, 
good  advertising  and  constant  effort  should  continue  to  in- 
crease her  trade  enormously. 


58 


12. 

SUGGESTIONS 

for 
PROMOTION  OF  TRADE. 


(A)     HOME  CONSIDERATION  AND  PREPARATION. 

1.  Primarily,  a  careful  study  of  the  market  must  be 
made.     This  should  include  geography,  climate  and  seasons, 
the  people  and  their  customs,  their  institutions,  commerce, 
finance,    foreign    competition,    resources    and    expenses    of 
operation. 

2.  Next  must  be   considered  the  various  mediums  of 
reaching  the  market,  i.  e. :  travelling  salesmen,  permanent  resi- 
dent representation,  branch  offices,  European  or  native  agency 
houses  established  in  India,  export  establishments,  association 
of  manufacturers  pooling  expenses  and  export  managers,  etc. 

3.  It  must  be  decided  to  enter  the  Indian  market  per- 
manently. 

4.  Manufacturers  and  merchants  must  be  prepared  to 
lay  out  a  considerable  amount  of  money  annually  for  such 
exploitation. 

5.  Satisfactory  returns  must  not  be  looked  for  before 
two  or  three  years,  though  results  should  begin  to  be  felt 
after  18  months. 

6.  The  home  office  must  be  carefully  organized  and  effi- 
ciently run,  to  handle  the  business  when  it  comes  in. 

7.  Personal  contact  and  interest  must  be  shown  when- 
ever and  as  often  as  possible. 

59 


8.  The  minutest  attention  to  detail  must  at  all  times  be 
exercised  and  manufacturers  or  merchants  must  prepare  to 
send  to  India  what  India  wants. 

9.  If  direct  contact  is  to  be  established  a  suitable  branch 
office  must  be  rented  in  a  desirable  quarter  of  one  of  the  chief 
ports  or  commercial  centers;  preferably  in  Calcutta  or  Bom- 
bay, for  general  sales  promotion. 

(B)     CHOOSING  A  REPRESENTATIVE. 

1.  A  representative  sent  out  from  this  country  to  India 
should  be  a  gentleman  from  25  to  45  years  of  age.    He  must 
have  great  adaptability,  good  address  and  a  fine  personality. 
He  must  be  a  man  of  good  education  and  broad  liberal  views. 
He  should  have  good  health,  good  habits  and  a  general  knowl- 
edge of  the  country  and  the  people  he  is  to  approach.  He  must 
not  be  a  commission  hunter. 

2.  He  should  arrive  in  India  well  introduced  and  be  pre- 
pared to  make  his  life  and  interests  common  with  those  of  the 
people  among  whom  he  is  to  foster  trade.    He  should  belong 
to  their  town  and  country  clubs,  and  should  entertain  consid- 
erably.   Above  all,  he  must  keep  up  his  social,  financial  and 
commercial     standing     among     his     friends     and     business 
associates. 

3.  Whenever  possible,  he  should  endeavor  to  pick  up  as 
much  of  the  language  predominant  in  the  country  as  he  is 
able. 

4.  The  representative  should  be  well  versed  in  the  prod- 
uct or  article  he  is  selling;  should  have  a  love  and  instinct 
for  foreign  trade  and  a  general  knowledge  of  credits  and 
banking  terms. 

(C)     DEPARTURE. 

1.  The  representative  should  leave  this  country  fully 
equipped  with  literature  covering  his  complete  line,  and 
should  be  backed  by  an  advertising  campaign  suitable  for  the 
country.  He  should  have  a  clear  and  thorough  cable  code  for 
his  entire  line,  proper  financial  support  carefully  arranged 
for,  during  residence  in  India,  suitable  letters  of  introduction, 

60 


credentials  and  customers'  lists,  definite  instructions  regard- 
ing prices  and  selling  terms,  authority  to  act  for  his  firm  in 
cases  of  default  of  drafts,  etc.,  and  a  true  financial  statement 
of  the  firm  he  is  representing. 

2.  Suitable  clothes  and  traveling  necessities  might  bet- 
ter be  purchased  after  his  arrival  in  India,  and  far  more 
cheaply.  (See  General  Useful  Information,  Chapter  14.) 

(D)  TIME  FOB  DEPARTURE  AND  ROUTES  OF 
APPROACH. 

1.  The  best  season  in  India  for  business  is  from  October 
to  February,  when  the  days  are  cool  and  generally  healthful 
conditions  prevail.     By  then,  the  people  know  the  result  of 
the  monsoon  and  are  better  able  to  estimate  their  require- 
ments. 

2.  The  American  representative  has  a  choice  of  several 
routes  for  his  trip  to  India,  namely: 

Direct  from  New  York  through  Mediterranean  and  Red 
Seas  via  Aden  to  Karachi,  Bombay,  Colombo  and  Calcutta. 

From  Seattle  to  Hongkong  via  Japan,  to  Singapore,  etc. 

From  San  Francisco  to  Calcutta  via  Manila,  etc. 

From  New  York  to  London,  to  India  via  Pacific  &  Orient 
sailings. 

Boats  from  the  West  Coast  of  America  to  the  Chinese 
Coast  take  about  three  weeks  from  point  of  departure  to  point 
of  transshipment  for  Calcutta. 

(E)     TERMS  OF  SALE,  CREDIT  RISKS,  BANKS. 

1.  During  the  war  the  United  States  was  able  to  get  a 
large  volume  of  Indian  trade  on  its  own  terms,  prices  and 
delivery;  primarily  due  to  the  inability  of  foreign  countries 
to  supply  manufactured  articles,  and,  secondly,  because  the 
exchange  greatly  favored  the  rupee.  Now,  however,  things 
have  changed.  Continental  competition  and  low  prices  are 
beginning  to  appear;  the  exchange  is  against  India  and  long 
terms  are  being  offered  to  get  the  business.  If  this  compe- 
tition is  to  be  satisfactorily  met,  America,  as  a  nation,  and 

61 


American  banking  institutions  must  organize  to  back  the  in- 
dividual pioneers  who  are  trying  to  promote  the  sale  of  Amer- 
ican goods  in  foreign  markets.  No  longer  can  individual  mer- 
chants and  manufacturers  be  expected  to  compete  favorably 
against  foreign  countries,  well  organized  for  this  trade,  whose 
large  associations  and  institutions  are  all  helping  to  retain 
their  old  volume  of  trade  in  foreign  fields.  The  finances  of 
our  country  must  be  placed  more  at  the  service  of  our 
merchants. 

The  following  conditions  regarding  terms  of  sale  and 
quotations  should  be  carefully  regarded  in  order  to  reap  a 
satisfactory  result  from  Indian  trade. 

2.  Cheapness  and  appearance  are  far  more  important 
in  the  Indian  market  than  quality  and  lasting  powers.    This 
is  chiefly  due  to  the  low  standards  of  living  and  small  in- 
comes, though  the  country  itself  has  great  natural  wealth. 

3.  Next  to  cheapness  and  appearance  (which  apply  gen- 
erally to  the  native  trade,  not  to  the  European  community 
and  industrial  institutions)  are  the  terms  of  sale.    The  Bazaar 
dealer  usually  requires  or  demands  60,  90  or  120  D/S,  doc- 
uments D.  A.  (documents  against  acceptance) ;  D.  A.  should 
not  be  allowed  native  firms.     They  are,  as  a  rule,  not  very 
punctual  in  making  payments;  but  will  generally  be  willing 
to  pay  even  a  higher  rate  of  interest  than  the  bank  rate,  on 
overdue  drafts.    All  payments  should  be  made  promptly,  and 
American  firms  should  insist  on  this  point.     It  is  quite  a 
usual  custom  to  allow  a  deduction  of  interest  at  the  ordinary 
bank  rate  prevailing  for  any  days  remaining  unexpired,  when 
payment  is  made. 

The  wholesale  houses  and  large  European  importers  gen- 
erally expect  30  to  60  D/S,  D.  P.  or  D.  A.,  and  consider  it  a 
matter  of  honor  to  meet  draft  at  maturity.  These  houses  are 
very  good  customers  and  thoroughly  reliable.  In  cases  where 
they  cannot  meet  the  draft  at  maturity,  they  generally  advise 
the  seller  and  ask  for  an  extension  of  time. 

No  great  quantity  of  business  can  be  done  on  the  basis 
of  funds  in  New  York  with  order,  or  on  the  straight  irre- 
vocable letter  of  credit  basis ;  though  it  should  be  used  in  cases 


of  sudden  market  stagnation  and  a  severe  unforeseen  drop  in 
exchange.  For  in  such  times  the  less  responsible  houses  are 
apt  to  default  on  payments  or  ask  for  long  extensions. 

In  dealing  with  the  native  of  small  financial  or  moral 
responsibility,  it  is  generally  well  to  use  the  services  of  a 
Banian  or  a  Schroif,  who  undertakes  the  Bazaar  risk,  guaran- 
teeing the  importer  against  loss.  His  acceptance  of  the  draft 
against  the  bill  of  lading  is  provided  for  by  the  importing  firm 
before  they  decide  to  execute  or  accept  the  order.  His  usual 
charge  is  1%  to  2%  of  the  amount  of  the  draft.  As  these 
Schroffs  operate  through  the  banks  and  are  not  employed  by 
individuals,  it  is  impossible  to  get  in  touch  with  them  by 
correspondence. 

Frequently  in  dealing  with  Bazaar  customers,  an  agent 
is  appointed  as  the  "in  case  of  need,"  and  drafts  are  drawn 
accordingly,  with  such  instructions. 

On  all  documents  not  honored  at  maturity  a  protest 
should  be  requested,  for  this  formality  is  often  indispensable 
in  proving  non-payment. 

Interest  and  collection  charges  covering  all  documents 
for  India  are  always  for  the  account  of  the  customer. 

The  interest  on  drafts  drawn  on  Indian  buyers  has  in 
the  past  few  years  usually  varied  from  6%  to  8%. 

(F)     METHODS  OF  SALES. 

The  usual  method  of  reaching  the  consumer  in  India, 
without  direct  representation,  is  to  appoint  a  firm  in  Bombay, 
Calcutta  and  Madras  as  an  agent  for  one's  goods.  These  cen- 
tral agencies  are  generally  allowed  the  exclusive  selling  rights 
for  a  territory  about  the  area  of  the  Bombay  or  Madras  Pres- 
idencies. These  central  agents  then  send  out  their  salesmen 
through  this  territory  and  book  orders,  appointing  in  certain 
smaller  industrial  and  commercial  centers,  sub-agents,  who 
canvass  a  local  territory  allotted  them  by  the  central  agent. 
All  the  agents  and  salesmen,  from  the  big  importer 
down,  work  on  a  commission  basis  (plus  salary  for  the  sales- 
men). Any  American  firm,  therefore,  who  has  a  saleable 
article  for  which  there  is  a  large  and  steady  demand,  would 

63 


do  well  to  establish  their  own  branch  office  and  employ  native 
salesmen.  This  method  would  require  a  considerable  outlay 
of  money;  but  would  eliminate  the  big  importers'  profit  and 
quite  possibly  another  intermediary  profit  and,  in  the  long 
run,  should  well  repay  the  initial  cost. 

BANKS  AND  BANKING  INSTITUTIONS. 

There  are  some  twenty  first-class  banking  houses  and 
banks  in  India,  with  branches  in  most  of  the  commercial  cen- 
ters throughout  the  interior.  These  banks  render  valuable 
services  to  the  foreign  merchant  and  traveler  as  well  as  to 
local  firms  and  individuals  of  the  country.  A  large  majority 
of  the  influential  banks  in  India  have  agents  in  New  York 
and  other  cities  throughout  the  United  States.  These  banks 
and  their  agents  attend  to  the  discounting,  forwarding  and 
collections  on  foreign  bills,  the  purchasing  of  exchange,  the 
issuing  of  acceptance  and  bankers'  acceptance  credits,  and 
advising  of  credits  which  have  been  established  in  the  ex- 
porters' favor  by  foreign  buyers. 

In  India  especially  the  banks  are  of  great  assistance  in 
advising  credit  standing  of  prospective  customers  (one  must 
be  a  depositor  of  the  bank  to  get  the  best  information).  They 
frequently  render  valuable  service  in  the  disposal  of  unac- 
cepted merchandise,  and  in  the  details  of  incoming  shipments. 
They  will  always  be  found  courteous  and  willing,  particularly 
providing  the  enquirer  is  a  good  customer  and  has  a  deposit 
with  them. 

It  is  to  be  hoped  that  shortly  more  American  banks  will 
open  branches  in  India  and  make  a  careful  study  of  the 
country  in  order  to  be  in  a  position  to  help  American  Trade 
gain  a  firmer  foothold. 

( G)     QUOTATIONS  TO  INDIA  AND  THEIR  MEANINGS. 

Buyers  in  India  desire,  whenever  possible,  to  be  quoted 
C.  I.  F.  (cost,  insurance  and  freight)  Bombay,  Calcutta, 
Karachi  or  Madras;  namely,  the  chief  ports  of  call.  There 
are  many  times,  particularly  so,  when  business  is  slack,  that 
American  firms  could  get  orders  if  it  were  possible  for  them 
to  quote  out-ports  or  small  coastal  ports  such  as  Cochin,  Cali- 

64 


cut,  Marmagao,  etc. ;  but,  due  to  the  rulings  of  the  Conference 
Lines  (a  sort  of  consortium  or  association  of  English  shippers 
operating  lines  to  India  and  coastal  lines),  it  has  been  im- 
possible to  do  so.  Shipments  to  certain  outports,  at  certain 
times,  frequently  mean  a  great  saving  of  time  and  inland 
freight  to  the  customers. 

It  might  be  well  at  this  time  to  define,  as  the  English 
understand  them,  certain  shipping  quotations  and  abbrevir 
ations : 

F.  0.  B. — Free  on  board  vessel  at  port  of  departure. 

F.  0.  R. — Free  on  rails  (add  city  or  port). 

F.  A.  S. — Free  alongside  vessel  or  wharf.  (Foreigners 
sometimes  understand  it  to  mean  free  aboard  vessel.) 

C.  I.  F. — Cost,  insurance  and  freight  (shipper  pays  all 
expenses  from  factory  to  port  named  on  bill  of  lading). 

W.  A.  P. — With  particular  average.  (Usually  3%  to  5% 
that  must  be  suffered  before  a  claim  is  allowed.) 

C.  &  F. — Same  as  C.  I.  F.,  except  seller  does  not  insure. 

C.  I.  F.  &  E. — Cost,  insurance  and  freight  and  exchange 
for  the  account  of  the  shipper.  (Practically  never  employed 
in  India.) 

C.  I.  F.  C.  I. — Cost,  insurance,  freight,  collection  charges 
and  interest.  Exchange  for  the  account  of  the  customer ;  this 
is  a  very  favored  quotation  in  India  and  not  difficult  to  figure. 

(H)     *DOCUMENTS. 

There  are  no  consular  documents  of  any  kind  required. 
The  usual  set  of  documents  forwarded  to  a  bank  covering  a 
shipment  to  India,  includes  the  following: 

A  30,  60  or  90  days'  sight  draft  drawn  on  the  customer 
(in  duplicate)  to  the  order  of  the  exporter  and  endorsed  by 
him.  (Amount  of  draft  to  cover  total  cost  of  merchandise 
C.  I.  F.,  providing  insurance  is  arranged  for  by  shipper.) 

*A11  documents  requiring  signature  should  be  signed  by  one  having 
the  authority  to  use  the  firm  or  company  name,  in  order  to  show  the  for- 
eign customer  he  is  getting  personal  attention  from  the  executives  of  the 
house. 

65 


Bills  of  Lading  (original,  duplicate  and  triplicate;  nego- 
tiable or  signed). 

Insurance  certificates  (original,  duplicate  and  triplicate). 

Invoice,  original  (duplicate  and  triplicate  if  desired). 

Letter  of  Instruction  to  bank  covering  all  papers. 

The  Tariff  Duty  in  India  is  an  ad  valorem  duty  with 
values  usually  fixed. 

(I)     METHODS  OF  RECEIVING  PAYMENTS  IN 
UNITED  STATES. 

SIGHT  DRAFTS. 

1.  Sight  drafts  of  30,  60,  90  and  120  days  are  forwarded 
with  complete  set  of  documents  to  the  shipper's  bank  in  the 
United  States.     The  bank  discounts  these  bills  at  their  full 
face  value  and  pays  the  shipper  the  total  amount  of  the  draft. 
These  bills  are  discounted  with  recourse  to  the  shipper.    In- 
terest at  the  usual  rate   current   for  India  and  collection 
charges  are  for  the  account  of  the  customer.    The  documents 
are  then  forwarded  to  the  bank's  branch  in  India  or  their 
correspondents  and  then  are  presented  to  the  customer.    Ac- 
cording to  the  shipper's  instructions,  the  documents  are  sur- 
rendered against  acceptance  or  payment  of  the  draft,  as  the 
case  may  be.    Should  the  documents  be  honored  at  maturity 
the  transaction  is  closed  financially  as  far  as  the  shipper  is 
concerned.     Should,   however,   the   documents   be  defaulted 
at  maturity,  the  bank  will  have  recourse  to  the  shipper,  who 
must  immediately  reimburse  them  for  the  full  amount.     In 
such  cases  the  shipper  should  have  the  draft  protested  and, 
if  necessary,  extend  usance  30  days  with  interest  with  which 
to  straighten  the  matter  out.    If  still  the  draft  is  unpaid  the 
matter  should  be  taken  up  with  the  local  Chamber  of  Com- 
merce nearest  the  customer  in  India.  When,  and  if,  eventually, 
the  money  is  collected,  the  bank  in  India  returns  same  to  the 
shipper  in  the  United  States. 

BANKS'  ACCEPTANCE  CREDITS. 

2.  This  is  a  credit  issued  in  favor  of  a  merchant  in  the 
United  States  by  his  bank  in  the  United  States  generally  over 

66 


a  period  of  time  for  a  stipulated  amount  or  up  to  a  stipulated 
amount  during  the  period  agreed  upon.  Documents  and 
drafts  to  the  amount  of  the  shipment  are  drawn  on  the  cus- 
tomer as  in  case  (1)  and  forwarded  together  with  the  draft 
of  acceptance  drawn-  on  the  shipper's  bank  at  sight  (against 
the  acceptance  credit  already  opened).  The  bank  then  ac- 
cepts acceptance  draft,  stamps  and  returns  it  to  the  shipper, 
who  then  discounts  it  in  the  open  market  at  a  rate  usually 
varying  from  4%  to  6%.  The  documents  and  draft  on  the 
customer  go  through  as  in  case  (1)  with  recourse.  In  cases 
of  non-payment  the  same  action  is  taken  as  in  case  (1).  The 
interest  lost  in  the  sale  or  discounting  of  the  draft  in  the  mar- 
ket, on  all  big  orders,  should  be  figured  in  the  price  of  the 
goods  when  quoting  the  customer  in  India.  Acceptance  cred- 
its are  obtained  for  a  rate  of  about  y8  of  1%  for  30  days.  The 
discount  rate  depends  largely  on  the  value  of  the  paper,  or, 
in  other  words,  how  reliable  the  acceptance  is. 

PARTIAL  DEPOSIT. 

3.  Another  method  of  selling  and  financing  a  shipment 
to  India  is  as  follows :    Require  the  customer  to  deposit  to  the 
shipper's  order  in  the  shipper's  New  York  bank  or  the  ship- 
per's branch  in  India,  a  certain  proportion  of  the  total  value 
of  the  order,  say  50%  or  75% ;  even  25%  will  very  often) 
prove  a  valuable  safeguard.    This  deposit  should  be  made  at 
the  time  of  placing  the  order  and  remain  in  the  bank  until  the 
goods  leave  the  port  of  departure.    A  30,  60  or  90-day  sight 
draft  should  then  be  drawn  on  the  customer  for  the  balance 
of  the  value  of  his  goods,  and  the  money  deposited  at  the  time 
of  placing  the  order  should  then  be  forwarded  by  the  bank 
to  the  shipper.    All  details  of  papers,  etc.,  to  go  through  as 
in  Case  (1)  or  Case  (2). 

REFUND  INTEREST. 

4.  To  make  Case  (3)  more  attractive  to  the  buyer,  the 
seller  can  refund  to  the  buyer  the  interest  drawn  on  the 
American  or  Indian  bank,  on  the  deposit  made  by  the  buyer 
to  the  shipper,  at  the  time  of  placing  his  order. 

67 


FULL  DEPOSIT  OF  CASH. 

5.  This  method  is  similar  in  every  way  to  Case  (3)  ex- 
cept that  the  buyer  at  the  time  of  placing  his  order  deposits  to 
the  seller's  account  the  full  value  of  the  order.    Such  deposit 
can  be  made  in  either  the  seller's  branch  bank  in  India  or  at 
the  seller's  bank  in  the  United  States.    Upon  notification  by 
the  bank  and  presentation  of  the  documents  to  the  customer 
in  India,  the  money  should  be  immediately  remitted  to  the 
seller  in  the  United  States.    The  interest  drawn  on  the  deposit 
can  then  be  refunded  to  the  customer,  less  the  cost  of  the 
cable  transfer  of  funds.     Exchange  in  Case   (2)   and  Cases 
(3),  (4)  and  (5)  should  be  for  the  account  of  the  customer. 

IRREVOCABLE  CREDITS. 

6.  By  this  method  the  customer  in  India,  through  his 
bank,  opens  in  the  branch  bank  in  the  United  States  an  irrev- 
ocable letter  of  credit  in  favor  of  the  seller.     This  letter  of 
credit  is  usually  drawn  for  the  full  amount  of  the  merchan- 
dise C.  I.  F.  India.    It  usually  stipulates  a  date  of  delivery 
by  the  clause  "not  later  than"  such  and  such  a  date,  or 

states  ' '  during  the  month  of . ' '    It  also  advises  what 

insurance  is  to  be  covered  and  what  documents  must  be  pre- 
sented to  the  bank.     Upon  completion  of  the  documents  a 
draft  is  drawn  on  the  bank,  issuing  the  credit,  for  the  full 
value  of  the  shipment  C.  I.  F.     On  such  a  draft  the  bank  is 
usually  advised  as  follows :    ' '  Drawn  against  your  Irrevocable 

Credit  No. ,  your  advice  of  such  and  such  a  date. ' '  There 

is  no  recourse  to  the  shipper  after  the  bank  has  paid  him; 
other  than  a  moral  responsibility  for  the  quality  and  packing 
of  his  goods  and  for  his  compliance  with  the  terms  of  sale. 

NOTES. — Letters  of  credit  are  generally  opened  for  bank  customers  at 
a  rate  of  ft%  to  %%  for  30  days.  This  should  be  an  absolutely  safe 
method  of  doing  business,  though  in  1920  I  believe  there  were  isolated 
cases  where  injunctions  were  declared  against  such  credits  after  advice 
to  the  seller  that  the  credit  had  been  opened.  As  a  matter  of  fact,  the 
letter  of  credit  method  is  a  poor  way  to  get  business  in  any  volume  over 
a  long  period  of  years,  as  it  advertises  a  lack  of  faith. 


68 


13. 

EXPENSES  OF  ESTABLISHING  AN  OFFICE  IN  CAL- 
CUTTA. 


Office  space  in  the  principal  trading  centres  of  India  is 
in  considerable  demand  and,  consequently,  quite  costly.  Cal- 
cutta generally  receives  the  highest  prices  for  rent  and  va- 
rious other  rates,  as  it  is  the  chief  commercial  centre  in  India. 
Most  prices  of  articles  or  rates  in  this  pamphlet,  given  as  af- 
fecting Calcutta  or  Bengal,  can  be  graded  down  as  applying 
to  other  cities  approximately  as  follows:  in  proportion  from 
high  to  low:  Bombay,  Madras,  Karachi,  Rangoon  and  up- 
country  or  inland  cities ;  but  in  order  to  make  this  pamphlet 
conveniently  short,  merely  a  general  basis  on  which  to  work 
is  given. 

(A)     OFFICE  SPACE,  RENTS,  SALARIES,  ETC. 

Office  rent  in  a  suitable  locality  in  Calcutta  costs 
about  $3.50  to  $4.00  per  square  foot  per  annum.  In  Bombay, 
in  old  office  buildings,  rent  is  about  $1.50  per  square  foot  per 
annum ;  in  new  buildings,  $2.50  to  $3.00  per  square  foot  per 
annum,  and  so  on  down,  according  to  the  city  and  location. 
The  salaries  of  office  employees  vary  very  largely  and  can  only 
be  roughly  stated.  For  the  less  efficient  and  poorer  type  of 
employee  the  salary  ranges  from  50  to  75  rupees  per  month ; 
for  the  better  and  more  intelligent  type  of  employee,  it  ranges 
from  75  to  150  rupees  per  month.  Native  salesmen  work 
largely  on  a  commission  basis  of  2%%  plus  $75  to  $100 
per  month.  They  usually  travel  second-class.  The  salaries 
are  all  according  to  a  man's  efficiency  and  the  importance  of 
the  work  to  be  done.  To  run  a  first-class  branch  office  in  Cal- 

69 


cutta,  exclusive  of  executives'  salaries,  the  cost  could  be  esti- 
mated and  itemized  approximately  as  follows: 

Employees'  payroll,  for  staff  of  about  10  employees. .  $15,000 

Traveling  expenses  of  executives  (to  consist  of  con- 
siderable traveling  at  all  times) 15,000 

Entertainment  and  advertising,  office  rent,  stationery 

and  cables $18,000  to  20,000 

Contingencies  or  Reserve  Fund 15,000 

The  estimate  above  given  would  be  the  type  of  selling 
organization  representing,  let  us  say,  an  association  of  reliable 
and  old  established  manufacturing  concerns,  which  had  pooled 
the  expenses  of  running  such  an  organization;  these  firms 
should  not  be  competing,  but  should  be  manufacturers  of 
kindred  articles  and  number  about  10  to  12  in  all. 

A  firm  operating  its  own  branch  office  with  one  resident 
representative  sent  out  from  the  Home  Office  and  employing 
only  two  or  three  native  assistants  to  the  representative, 
could,  of  course,  be  conducted  far  more  cheaply.  A  fair  esti- 
mate for  this  type  of  representation  would  be  from  $20,000 
to  $30,000  per  annum,  exclusive  of  executive's  salary. 

These  estimates  to  the  general  reader  will  undoubtedly 
seem  unnecessarily  high,  but  in  the  Orient  where  entertain- 
ment figures  so  largely,  where  distances  are  so  great,  where 
one  advertising  medium  would  only  reach  but  a  portion  of 
the  population  and  at  such  a  great  distance  from  the  home 
office,  it  is  necessary  to  be  prepared  to  make  initially  quite  a 
considerable  outlay  of  money.  If  properly  introduced,  rep- 
resented, and  well  advertised,  the  American  manufacturer 
should  find  in  India  a  market  for  his  goods,  which  should 
amply  repay  after  a  year  or  two,  his  decision  seriously  to 
enter  the  market. 

Eepresentation  of  one's  wares  in  India  can,  of  course, 
be  done  on  a  far  less  expensive  scale,  though  with  probably  a 
corresponding  proportion  of  sales  volume,  and  a  far  less  per- 
manent foothold  and  reputation  in  the  country. 

70 


(B)     ADVERTISING  IN  INDIA. 

For  the  most  part,  newspaper  and  other  mediums  of  ad- 
vertising should  be  of  an  appealing  and  attractive  nature,  but 
at  all  times  dignified.  A  careful  study  of  the  religions,  cus- 
toms and  superstitions  of  the  people  should  be  made ;  for,  b,y 
ignorance  of  these  facts,  some  caste  might  be  offended,  and  the 
demand  for  the  goods  permanently  destroyed. 

Inasmuch  as  comparatively  few  of  the  village  population 
in  India  read  newspapers,  and  as  such  publications  would 
necessarily  vary  in  different  provinces  and  districts,  indis- 
criminate newspaper  advertising  would  prove  wasteful. 
Plenty  of  literature  should  always  follow  a  campaign  in  the 
newspapers.  Advertising  rates  are  comparatively  high;  but 
if  the  advertisements  reach  the  population  for  whom  they 
are  destined,  the  results  are  very  good.  Simple  pictorial  ad- 
vertising will  always  prove  effective.  Among  other  media 
most  commonly  used  can  be  listed:  Mirrors,  paperweights, 
postage  stamp  books,  fans  and  umbrellas.  Window  displays 
are  receiving  more  attention,  and,  together  with  novelty  elec- 
trical signs,  are  proving  an  attractive  drawing  card. 

The  Motion  Picture  is  one  of  the  leading  methods  at  the 
present  time  and  is  quite  reasonable  as  regards,  cost. 

The  general  rates  for  newspaper  advertising  in  the  best 
English  printed  papers  in  India  are  70e  per  inch  for  12  in- 
sertions of  ordinary  trade  announcements,  graded  down  to 
35c  per  inch  for  104  insertions — 25%  extra  for  special  posi- 
tions— and  about  50%  for  positions  next  to  editorial  matter. 

(C)     PACKING  AND  MARKING  OF  MERCHANDISE. 

In  all  shipments  to  India  one  of  the  chief  considerations 
is  that  of  proper  packing.  The  climate  is  such  at  almost  all 
seasons  of  the  year,  either  in  India  or  enroute,  that  unless 
goods  are  properly  and  carefully  packed,  upon  arrival  they 
may  prove  useless  and  will  not  be  accepted,  which  entails 
much  time,  trouble,  loss  of  money,  and  is  ruinous  to  the  name 
of  the  manufacturer  and  reputation  of  his  goods.  The  most 
destructive  conditions  and  elements  met  with  are  as  follows: 

71 


Dampness  of  the  sea  air  on  the  voyage. 
Excessive  moisture  in  the  Tropics. 

Sweating  in  the  hold  of  the  ship  in  the  Arabian  Sea,  In- 
dian Ocean  and  the  Bay  of  Bengal. 

Exposure  to  sun  and  rain  on  the  wharves. 
Mildew,  white  ants  and  fungoid  growths. 

The  importance  of  these  attacks  on  cargoes  during  transit 
and  after  arrival  at  the  ports  cannot  be  too  strongly  impressed 
on  the  shipper.  An  effective  protection,  frequently  employed 
by  shippers  who  know  and  have  made  a  study  of  the  condi- 
tions, is  to  pack  goods  in  zinc  or  tin-lined  cases  with  water- 
proof lining.  Usually  this  method  is  employed  only  at  the 
request  of  the  buyers,  and  the  additional  cost  is  charged  to 
them. 


72 


14. 

USEFUL    INFORMATION    FOR    THE    COMMERCIAL 
REPRESENTATIVE. 


In  supplying  the  following  general  information,  much  of 
which  includes  expenses,  rates  for  public  service,  clothes,  etc., 
it  must  be  taken  into  consideration  that  these  are  subject  to 
change  from  time  to  time.  Most  of  the  rates  and  expenses 
are  based  on  Bengal  and  Calcutta  figures  and  would  cor- 
respondingly decrease  in  proportion  for  other  localities.  How- 
ever, for  figuring  estimates,  etc.,  any  slight  change  from  these 
figures  which  may  have  taken  place  in  the  last  six  months, 
would  not  be  of  sufficient  magnitude  to  alter  seriously  a  rough 
estimate. 

(A)     *CLOTHES  FOR  INDIA. 

MEN.  A  good  cork  sun  helmet,  protecting  the  temples 
and  the  base  of  the  skull. 

Enroute  via  Red  Sea  and  Arabian  Sea,  thin  clothes  are 
needed — tweed  or  flannel. 

For  Northern  India,  clothes  are  required  similar  to 
autumn  weight  in  this  country,  and,  in  addition,  warm  winter 
wraps,  a  light  overcoat  suitable  for  riding,  and  a  heavy  ulster, 
as  well  as  riding  breeches,  coat  and  boots.  In  this  section 
one  should  dress  so  as  to  be  warm  in  the  early  morning  and, 
as  the  heat  increases,  be  able  to  take  off  garments  without 
entirely  changing. 

In  the  south  of  the  Indian  Peninsula  and  in  Bombay 
and  Calcutta,  cool  linen  suits,  khaki  riding  and  shooting  suits 
are  used. 


*(Can  be  easily  and  more  cheaply  purchased  in  India.) 

73 


Linen  clothes  and  underclothing  for  at  least  three  weeks, 
should  be  provided,  due  to  irregularity  and  uncertainty  of 
laundries. 

Soft  cheviot  shirts  and  collars,  or  thin  flannel,  are 
needed  for  day. 

A  straw  or  felt  hat  for  cooler  hours  of  the  day  is  nec- 
essary. 

A  thin  dinner  jacket  (Tuxedo)  and  a  full  dress  suit  are 
required. 

WOMEN.  Thin  shirtwaists  and  skirts  of  Tussore  silk,  or 
similar  material,  have  been  found  suitable. 

A  sun  helmet,  similar  to  a  man's,  is  necessary. 

Kiding  and  shooting  suits  of  khaki  are  necessary. 

For  Northern  India  and  cooler  climates  a  warm  jacket  or 
shawl,  a  loose  warm  cloak,  a  light  dust  cloak  and  several  even- 
ing dresses  are  required. 

A  straw  or  similar  hat  for  the  cooler  hours  of  the  morn- 
ing and  evening  are  desirable. 

Large  sun  helmets,  if  going  on  shooting  expeditions,  are 
essential. 

Enroute  by  steamer  to  India  it  is  essential  to  take  suffi- 
cient linen  and  under  linen  in  the  cabin  for  most  of  the  voy- 
age. Cabin  luggage  is  necessarily  limited,  therefore,  packing 
should  be  planned  carefully.  A  bag  with  a  lock,  for  soiled 
linen,  should  be  taken.  Better  facilities  for  obtaining  lug- 
gage from  the  hold  have  recently  been  arranged,  therefore,  it 
is  not  necessary  to  take  as  much  in  the  cabin  as  formerly. 

(B)     RAILWAY  TRAVELING. 

BEDDING.  One's  bedding  roll  must  be  taken  on  all  trips, 
even  when  visiting  friends. 

A  bedding  roll  should  consist,  at  the  minimum,  of  a  pil- 
low, two  cotton  wadded  quilts,  one  to  sleep  on,  the  other, 
slightly  larger,  as  a  cover.  These  can  be  substituted  by  an 
eiderdown  or  a  pair  of  good  warm  blankets.  In  addition 
there  should  be  a  pillow  case,  sheets  and  a  light  blanket.  A 

.    74 


waterproof  roll  for  wrapping  the  bedding  in,  must  be  taken. 
Two  or  three  towels,  soap,  toilet  articles  and  necessary  tiffin 
baskets  for  food,  if  desired,  should  be  taken. 

( C )     TRAVELLING-SERVANTS. 

One  is  usually  accompanied  by  a  native  traveling  or 
personal  servant,  who  can  speak  English  and  who  should  have 
good  references. 

Women  may  travel  with  recommended  men  servants  with- 
out hesitation. 

(D)     ACCOMMODATIONS  ON  TRAINS. 

Each  compartment  is  provided  with  a  lavatory. 

Booking  of  luggage,  payment  of  bearers  or  porters  and 
guarding  of  compartment  during  absence  should  be  left  to 
the  servant. 

Small  parcels  should  be  placed  well  away  from  the  win- 
dows at  night  to  guard  against  thieves. 

Arrangement  for  refreshment  at  stations  can  be  made 
with  the  guard  on  the  train,  who  will  telegraph  ahead,  free 
of  charge. 

Baggage  allowance  on  first-class  tickets  to  be  booked  in 
the  van  car  is  125  pounds  free.  Thirty  pounds  is  allowed  on 
servants'  third-class  tickets.  All  excess  luggage  is  charged 
for  at  the  rate  of  about  9c  for  each  201/4  pounds  per  100  miles. 

(E)     RAILROAD  RATES. 

For  commercial  travelers  taking  a  trip  of  about  a  thou- 
sand miles,  with  one  or  two  stop-overs,  the  general  rate,  first- 
class,  would  figure  about  4c  per  mile,  including  stop-overs, 
carriages  and  tips. 

Third-class  for  servants  would  figure  about  three-fourths 
of  a  cent  per  mile. 

Straight  first-class  railroad  fares,  not  including  outside 
expenses,  figure  about  1  anna,  or  2c  per  mile. 

There  is  no  general  license  or  tax  on  commercial  travelers. 

75 


(F)    DISTANCES  AND  TIME  TAKEN  BETWEEN  SOME 
OF  THE  IMPORTANT  CITIES. 

Time  by  Mail  Trains 

Bombay  to  Hyderabad  425  miles 

Bombay  to  Nagpur  300  " 

Bombay  to  Madras  794     "                      32       hours 

Bombay  to  Calcutta  1,250  "                     40 

Bombay  to  Cawnpore  840  "                      24         " 

Bombay  to  Delhi  965  "                     27 

Bombay  to  Benares  940  " 

Bombay  to  Lahore  1,162  "                     38 

Bombay  to  Ahmedabad  310  " 

Bombay  to  Peshawar  1,450  "                     52         " 

Madras  to  Bangalore  City         219  " 

Madras  to  Cochin  420  " 

Madras  to  Calcutta  1,032  "                     39%      " 

Calcutta  to  Allahabad  512  " 

Calcutta  to  Darjeeling  385  "                     20 

Calcutta  to  Lucknow  630  " 

Calcutta  to  Cawnpore  616  " 

Calcutta  to  Benares  400  "                      16%      " 

Calcutta  to  Agra  805  " 

Calcutta  to  Delhi  950  " 

Calcutta  to  Lahore  1,215  " 

Calcutta  to  Simla  1,180  li 

Calcutta  to  Peshawar  1,500  " 

Karachi  to  Lahore  784  "                      24%      " 

Delhi  to  Simla  219  " 
Lahore  to  Peshawar                                                      11%      " 

Baggage  transportation  from  railroad  stations  to  hotels 
in  the  chief  cities,  such  as  Bombay  and  Calcutta,  for  five 
pieces  of  luggage  costs  from  3  to  5  rupees,  varying  according 
to  the  distance  and  the  city.  General  carriage  hire  for  com- 
mercial travelers  is  approximately  $1.75  to  $2.50  per  day. 

Travelers  should  be  well  supplied  with  small  change. 

76 


(G)     HOTEL  CHARGES. 

The  general  hotel  charges,  outside  of  such  cities  as  Bom- 
bay, Calcutta,  Madras,  etc.,  are  about  6  to  8  rupees  a  day  for 
board  and  lodging  (including  meals)  with  an  additional  small 
charge  for  baths.  Servants  are  not,  as  a  rule,  charged  for  in 
hotels,  when  accompanying  their  masters.  After  a  stay  of  a 
week  or  ten  days  in  a  hotel,  $1.00  or  $1.50  is  sufficient  for  the 
servants'  box.  Dak-bungalows  are  usually  supplied  where 
there  are  no  hotel  accommodations.  The  charge  in  such 
bungalows  is  about  $2.50  to  $3.50  per  day. 

(H)     MOTORING. 

The  roads  in  and  about  the  large  towns  and  those  con- 
necting the  principal  cities  will  ordinarily  be  found  good; 
but  most  of  the  smaller  and  outlying  roads,  particularly  at 
certain  seasons  of  the  year,  will  be  found  bad,  and,  during 
the  monsoon,  quite  often  impassable.  The  price  of  petrol  is 
exceedingly  high,  and  in  motoring  for  any  distance,  it  is  gen- 
erally necessary  to  make  arrangements  for  such  supply  of 
petrol  ahead.  Service  stations  are  few  and  far  between,  which 
necessitates  carrying  a  plentiful  supply  of  spare  tires. 

Shipment  of  cars  to  India  requires  their  being  crated, 
tires  removed  and  oil  and  grease  removed  from  the  engine  as 
well  as  other  parts  as  far  as  possible.  The  cost  of  packing  or 
crating  a  car  for  shipment  is  about  $25.00  to  $35.00,  and  the 
freight  is  about  $75.00  to  $150.00 ;  both  prices  depending  on 
the  size  of  the  car.  Import  duty  on  cars  is  5%  ad  valorem. 

(I)     SERVANTS. 

The  white  man  in  India  must  expect  and  demand  cour- 
tesy from  the  natives  and  service  from  those  whom  he  em- 
ploys. He  must  put  himself  in  no  way  under  obligation  to  a 
low  caste  Hindu  or  native.  He  must  not  ride  in  street  cars, 
in  certain  localities  where  he  observes  it  is  not  the  custom  to 
do  so.  He  must  always  keep  his  dignity  and  self-respect  be- 
yond reproach.  He  must  treat  natives  and  servants  justly; 
but  must  be  firm  with  them. 

77 


The  minimum  household  of  domestic  servants  for  a  fam- 
ily consisting  of  man,  wife  and  child  would  be  seven  or  eight. 
Such  a  menage  would  cost  about  200  rupees  a  month.  (The 
wages  for  domestic  servants  having  recently  increased  about 
50%.)  These  prices  are  current  in  Calcutta,  but  would  not 
apply  in  the  same  proportion  to  all  other  places  in  India. 
A  man's  personal  servant  or  traveling  servant,  generally 
costs  from  30  to  45  rupees  per  month.  There  is  a  special 
servant  for  each  type  of  work,  and  it  is  not  possible  to  get  one 
servant  to  do  various  odd  jobs  about  the  house.  Servants 
are  usually  engaged  on  a  contract,  to  which  both  parties  have 
to  live  up  to.  In  the  cities  where  one  has  lodgings  or  an 
apartment,  a  separate  room  for  servants,  elsewhere  in  the 
town,  is  generally  rented  along  with  the  apartment.  In  the 
suburbs  and  where  one  has  a  bungalow,  outhouses  for  the 
servants'  use  are  customary.  It  is  customary,  too,  for  the 
head  servant  to  employ  the  other  servants.  When  traveling, 
the  personal  servant  should  attend  to  all  tipping,  luggage  and 
minor  details.  After  a  visit  with  friends  it  is  customary  to 
make  a  present  to  their  head  servant.  For  a  visit  of  a  week 
to  ten  days,  5  rupees  is  sufficient.  If  one  employs  a  chauffeur 
it  is  customary  for  the  chauffeur  to  purchase  the  necessary 
spare  parts,  etc.,  for  the  car.  He  generally  buys  more  than  is 
necessary  and  gets  a  rake-off  (graft)  from  the  dealers.  It 
is  quite  customary,  however. 

(J)     MAIL. 

Letters  from  this  country  to  India  should  bear  a  5c 
postage  stamp. 

Individuals  should  always  be  addressed  as  Esquire,  not 
Mister. 

The  days  of  closing  for  foreign  mails  are  the  same 
throughout  the  year.  In  Calcutta  they  are  every  Friday,  in 
Bombay  every  Sunday,  in  Madras  every  Saturday.  Mail 
from  the  United  States  generally  takes  in  transit  21  to  26 
days;  passenger  steamers  about  30  days,  and  freight  about 
40  to  45  days,  these  times  depending  largely  on  the  steamers 
and  ports  of  call. 

78 


In  India  it  is  not  considered  good  form  to  make  business 
calls  before  10.30  or  11.00  A.  M.  unless  by  previous  appoint- 
ment. Nor  should  firms  be  approached  for  the  first  time  on 
mailing  days. 

(K)     DOCTORS'  FEES. 
Physicians'  ordinary  visiting  fees  are  about  15  rupees. 

(L)     CABLE  BATES. 

Cable  rates  from  the  United  States  to  India  are  66c  per 
word ;  full  rate  33c  per  word  deferred  rate. 

(M)     TELEGRAPH  RATES. 
INLAND. 

For  express  telegrams  of  12  words 1  Bs. —  8  Annas 

Each  additional  word  over  12  words 2  Annas 

For  ordinary  telegrams  of  12  words 12  Annas 

Acknowledgment  of  receipt 12  Annas 

Copies  of  telegrams,  10  words  or  less 4   Annas 

Addresses  are  charged  for. 

(N)     TELEPHONE  RATES. 

In  Calcutta  the  telephone  rates  are  approximately  as 
follows : 

EXCHANGE  LINES  WITHIN  THE  FOUR-MILE  RADIUS  OF 
EXCHANGE. 

Business  and  professional  premises 250  rupees  per  year 

Residences    175  rupees  per  year 

Extensions,  internal 70  rupees  per  year 

Extensions,  external,  not  exceeding  100 

yards 105  rupees  per  year 

79 


PRIVATE  LINES. 

Length  not  exceeding  y2  mile 150  rupees  per  year 

Length  not  exceeding    1  mile 180  rupees  per  year 

For  every  additional  one-half  mile,  add  about  30  rupees 
per  year. 

(0)     INDIAN  CURRENCY. 

3  Pies 1  Pice 

4  Pice    1  Anna 

16  Annas    1  Rupee 

Gold   Mohur 16  Rupees 

A  Lakh 100,000  Rupees 

A  Crore  100  Lakhs 

The  silver  pieces  are  Rupees,  8  Anna  pieces,  4  Anna 
pieces  and  2  Anna  pieces. 

The  nickel  silver  pieces  are :    The  1  Anna  piece. 

The  copper  pieces  are :  The  2  Pice,  1  Pice,  %  Pice  and 
1  Pie. 

The  standard  value  of  the  rupee  in  American  currency 
is  .324c.  In  English  currency  10  Rupees  to  the  pound. 

(P)     INDIAN  TIME. 

Standard  time  in  India  is  5%  hours  in  advance  of 
Greenwich  time.  The  railroads  now  run  on  standard  time. 
For  railroad  purposes  the  hours  are  counted  from  midnight 
up  to  24. 

The  difference  of  local  time  in  India  is  as  follows : 

Standard  time  in  advance  of  Madras 1  minute 

Standard  time  in  advance  of  Bombay. 39        " 

Standard  time  in  advance  of  Allahabad 2       " 

Standard  time  in  advance  of  Delhi 22 

Standard  time  in  advance  of  Karachi 61 

Standard  time  in  advance  of  Lahore 37 

Standard  time  behind  Calcutta 24 

Standard  time  behind  Chittagong 37 

80 


In  Burma  standard  time  is  6%  hours  in  advance  of 
Greenwich  time. 

(Q)   APPROACHING  OFFICIALS  OF  NATIVE  STATES. 

A  representative  desiring  to  do  business  with  the  officials 
of  a  native  state  must  obtain  proper  permission  and  introduc- 
tion. Such  permission  can  be  obtained  through  the  British 
Resident,  an  introduction  to  whom  can  be  got  by  applying  to 
the  representative  of  the  United  States  Government  stationed 
nearest  to  the  applicant,  or  through  some  influential  English- 
man whom  the  salesman  may  have  met  in  India.  Some  rulers 
of  native  states  are  far  more  progressive  than  others  and 
are  continually  on  the  lookout  for  up-to-date  methods  of  in- 
dustrial development,  sanitation  and  general  improvement  of 
their  domains. 

(R)     INDIAN  WEIGHTS  AND  MEASURES. 

The  Indian  system  of  weights  and  measures  varies  con- 
siderably in  different  localities..  In  general  the  weights  and 
measures  are  as  follows: 

In  Northern  India  and  in  the  standard  system  the  tola 
is  180  grains  troy  (the  exact  weight  of  a  rupee). 

The  seer,  2.057  pounds. 

The  maund,  82.28  pounds. 

In  Bengal  the  maund  is  82  2/7  pounds  avoirdupois,  or 
40  seers  or  100  troy  pounds. 

In  Bombay  the  maund  is  about  28  pounds. 

In  Madras  the  maund  is  about  25  pounds. 

The  seer  is  80  tola,  or  2.057  pounds  avoirdupois. 

The  tola  is  180  grains,  or  .4114  ounce  avoirdupois. 

The  guz  of  Bengal  is  36  inches. 

The  bigha,  or  (%  of  an  acre)  is  the  unit  for  square  meas- 
urement in  India. 

The  masha  is  y2  tola. 

The  ruttee  is  %  masha. 

The  factory  weight  maund  is  about  74  2/3  pounds. 

The  bazaar  weight  maund  is  about  82%  pounds. 

81 


Dry  and  liquid  goods  in  Calcutta,  Bombay  and  Madras 
are  sold  by  the  weight. 

Cotton  is  weighed  per  bale  of  392  pounds  net. 

Wheat  is  weighed  per  bag  of  2  hundredweight  (112 
pounds  to  cwt.). 

Oil  seeds  are  weighed  per  bag  of  l1/^  cwt. 

Wool  is  weighed  per  bale  of  336  pounds. 

Jute  is  weighed  per  bale  of  400  pounds. 

Opium  is  weighed  per  chest  of  140  1/7  pounds. 

Retailing  prices  are  generally  expressed  in  terms  of  seers 
to  the  rupee.  Namely,  when  the  figure  of  quantity  has  gone 
up,  it  means  the  price  is  cheaper,  and  vice-versa.  The  Indian 
prices,  therefore,  might  be  said  to  be  quantity  prices  and  not 
money  prices. 

(S)     BRITISH  INDIAN  COASTAL  SAILINGS. 

From  Calcutta  to  Rangoon — (direct)  Tuesdays,  Fridays 
and  Sundays. 

From  Calcutta  to  Singapore — Fridays  and  Sundays 
(transship  for  Rangoon). 

From  Calcutta  to  Straits — (direct)  generally  fortnightly. 

From  Calcutta  to  Ceylon,  Malabar  Ports  and  Bombay— 
As  inducement  offers.  (Generally  one  or  two  ships  a  month.) 

From  Calcutta  to  Mauritius — (via  Colombo)  every  four 
weeks. 

From  Bombay  to  Karachi — (direct)  Fridays. 

From  Bombay  to  Karachi — (via  Porebunder,  Dwarka, 
Cutchmandijie)  Mondays. 

From  Bombay  to  Karachi  and  Persian  Gulf  Ports- 
Thursdays. 

From  Bombay  to  all  other  coastal  ports — As  inducement 
offers,  but  generally  one  or  two  ships  monthly. 

From  Karachi  to  Bombay — (via  outports)  Mondays. 

From  Karachi  to  Bombay — (direct)  Thursdays. 

From  Karachi  to  Persian  Gulf  Ports — Tuesdays. 

From  Karachi  to  all  other  coastal  ports — As  inducement 
offers. 

82 


(T)     INTEREST  TABLE. 
FROM  5  TO  12%  ON  RUPEES  100. 

Calculated  for  1  year,  1  month  (calendar),  1  week  and 
1  day  (365  to  year). 

The  decimal  fraction  of  a  Pie  for  the  day  being  shown 
for  the  day. 


Per  Cent 


IDay 


1  Week 


1  Month 


1  Tear 


RS. 

A. 

P. 

RS. 

A. 

P. 

RS. 

A. 

P. 

RS. 

A.  P. 

5 

0 

0  2 

:630 

0 

1 

6 

0 

6 

8 

5 

0  0 

6 

0 

0  3 

:156 

0 

1 

10 

0 

8 

0 

6 

0  0 

7 

0 

0  3 

:682 

0 

2 

1 

0 

9 

4 

7 

0  0 

8 

0 

0  4 

:208 

0 

2 

5 

0 

10 

8 

8 

0  0 

9 

0 

0  4 

:734 

0 

2 

9 

0 

12 

0 

9 

0  0 

10 

0 

0  5 

:260 

0 

3 

0 

0 

13 

4 

10 

0  0 

11 

0 

0  5 

:786 

0 

3 

4 

0 

14 

8 

11 

0  0 

12 

0 

0  6 

:312 

0 

3 

8 

1 

0 

0 

12 

0  0 

83 


RUPEES  TO  DOLLARS. 


Rupees. 

o 

1 

2 

3 

4 

5 

• 

6 

7 

8 

9 

$0.3244 

$0.6489 

$0.9733 

$1.2977 

$1.6222 

$1.9466 

$2.2710 

$2.5955      $2.9199 

1O 

S3.  2443 

3.5688 

3.8932 

4.2176 

4.5421 

4.8665 

5.1909 

5.5154 

5.8398 

6.  KV12 

20 

6.4887 

6.8L31 

7.  1375 

7.4620 

7.7864 

8,1108 

8.4353 

8.  7597 

9.0841 

9.  40S6 

30 

9.7330 

10.  0574 

10.  3819 

10.7063 

11.0307 

11.3552 

11.6796 

12.0040 

12.3285 

12.6529 

40 

12.9773 

13.  30  IS 

13.6262 

13.9506 

14.  2751 

14.5995 

14.9239 

'15.2484 

15.5728 

15.8972 

50 

16.2217 

16.5461 

16.  8705 

17.  1950 

17.5194 

17.  8438 

18.  1683 

18.4927 

18.  8171 

19.  1416 

<>O 

19.4660 

19.7904 

20.  1149 

20.4393 

20.  7637 

21.0882 

21.4126 

21.  7J70 

22.0615 

22.3859 

7O 

22.7100 

23.0348 

23.  3592 

23.6830 

24.0081 

24.  3325 

24.6569 

24.9814 

25.3058 

25.6302 

80 

25.9547  !  26.2791 

26.6035 

26.9280 

27.2524 

27.  5768 

27.9013 

28.2257 

28.5501 

28.  8746 

9O 

29.1990 

29.5234 

29.  8479 

30.  1723 

30.  4967 

30.  8212 

31.  1466 

31.4700 

31.7945 

32.  1189 

DOLLARS  TO  RUPEES. 


Dollars. 

O 

1 

2 

3 

4 

5 

6 

7 

8 

» 

Rupees. 

Rupu*. 
3.082 

Rui>ees. 
6.  io5 

Rupees. 
9.247 

Rupees. 
12.329 

Rupees. 
15.  411 

Rupees. 
18.494 

Rupees. 
21.576 

Rupees. 
24.658 

Rupees. 
27.  741 

1O 

30.823 

33.905 

36.988 

40.070 

43.  152 

46.234 

49.317 

52.399 

65.481 

68.564 

2O 

61.646 

64.728 

67.  811 

70.893 

73.975 

77.057 

80.140 

83.222 

86.304 

89/387 

SO 

92.469 

95.551 

98.634 

101.  716 

104.798 

107.860 

110.963 

114.045 

117.  127 

120.  210 

40 

123.292 

126.374 

129.457 

132.539 

135.621 

138.703 

141.786 

144.868 

147.950 

151.033 

5O 

154.  115 

157.  197 

160.279 

163.362 

166.444 

169.526 

172.609 

175.691 

178.773 

181.856 

6O 

184.938 

188.020 

191.  102 

194.  185 

197.  267 

200.349 

203.432 

206.514 

209.596 

212.679 

7O 

215.761 

218.843 

221.925 

225.008 

228.090 

231.  172 

234.255 

237.337 

240.  419 

243.502 

8O 

246.584 

249.666 

252.  748 

255.831 

258.913 

261.995 

265.078 

268.100 

271.242 

274.325 

90 

277.407 

280.489 

283.571 

286.654 

289.736 

292.818 

295.901 

298.983 

302.065 

305.148 

ANNAS  AND  PIES  TO  DECIMALS  OF  A  RUPEE. 

In  line  with  the  annas  In  left-hand  column  and  in  the  same  column  with  the  pies  at  the  top  the  decimal 
is  found.  Thus  the  decimal  corresponding  to  5  annas  6  pies  is  0.3437;  conversely,  for  0.6615  rupee  the  value 
is  10  annas  7  pies. 


O 

1 

2 

3 

4 

6 

6 

7 

8 

9 

10 

11 

O 

0.0052 

0..0104 

0.0156 

0.0208 

6.0260 

0.0312 

0.0365 

0.0417 

0.0469 

0.0521 

0.0573 

1 

0.0625 

.0677 

;0729 

.0781 

.0833 

.0885 

.0937 

.0990 

.1042 

.1094 

.1146 

.1198 

2 

.1250 

.1302 

.1354 

.1406 

.1458 

.1510 

.1562 

.1615 

.1667 

.1719 

.1771 

.1823 

3 

.1875 

.1927 

.1979 

.2031 

.2083 

.2135 

.2187 

.2240 

.2292 

.2344 

.2396 

.2448 

4 

.2.300 

.2552 

.2004 

.2656 

.2708 

.2760 

.2812 

.2865 

.2917 

.2969 

.3021 

.3073 

5 

13125 

.3177 

.32J9 

.3281 

.3333 

.3385 

.3437 

.3490 

.3542 

.3504 

.3646 

.3698 

6 

.3750 

.3802 

.3854 

.3906 

.3958 

.4010 

.4062 

.4115 

.4167 

/4219 

.4271 

.4323 

7 

.4375 

.4427 

.4479 

.4531 

.4583 

.4635 

.4687 

.4740 

.4792 

.4844 

.4S96 

.4948 

8 

.5000 

.5052 

.5104 

.5156 

.5208 

.5260 

.5312, 

.5365 

.5417 

.5469 

.5521 

.5573 

9 

.5625 

.5677 

.5729 

.5781 

.5833 

.5885 

.5937 

.5990 

.6042 

.6094 

.6146 

.6198 

10 

.6250 

.6302 

.6354 

.6406 

.6458 

.6-510 

.6562 

.6615 

.0667 

.6719 

.6771 

.6823 

11 

.6875 

.6927 

.6979 

.7031 

.7033 

.7135 

.7187 

;7240 

.7292 

.7344 

.7396 

.7448 

12 

.7500 

.7552 

.7604 

.7«w6 

.770S 

.7760 

.7812 

.7865 

.7917 

.7969 

.8021 

.8073 

13 

.812-5 

.8177 

.8229 

.82X1 

.8333 

.8385 

.8437 

.8490 

.8542 

.8594 

.8646 

.8698 

14 

.8750 

.8802 

.8854 

.SWO 

.8938 

,9010 

.9062 

.9115 

.9107 

.0210 

.0271 

.9322 

15 

.9375 

.9427 

.9479 

.9531 

.95S3 

.9635 

.9087 

.0740 

.9702 

.9844 

.98% 

.0048 

15. 

AMERICA'S  CHIEF  FAULTS  IN  TRADING  WITH 

INDIA. 


The  United  States  in  developing  and  promoting  its  for- 
eign trade  on  a  more  extensive  basis,  has  not  only  certain 
outstanding  faults  to  overcome,  but  in  addition  is  handi- 
capped by  the  results  of  some  economic  causes.  With  a  large 
domestic  market  and  many  areas  of  this  country  only  slightly 
developed  our  manufacturers  have  not  had  the  incentive,  due 
to  lack  of  necessity,  to  turn  their  interest  to  foreign  trade. 
Such  interest,  however,  was  forced  upon  them  during  the  war 
and  the  years  directly  following  the  war;  and  India  became 
one  of  the  active  markets  and  one  of  the  largest  fields  for 
American  merchandise.  Wholly  unprepared  and  uneducated 
as  we  were  for  this  trade,  it  was  natural  that  our  opportunity 
should  not  be  grasped  and  carefully  fostered ;  but  should  be 
lost  again  in  the  restoration  to  more  normal  conditions.  How- 
ever temporary  the  influx  of  American  goods  in  India  may 
have  been,  it  did  serve  a  purpose ;  that  purpose  was  obtaining 
a  foothold  on  the  Indian  market,  the  education  of  the  country, 
to  a  small  extent,  to  American  industrial  methods  and  devel- 
opment and  served  to  show  the  varieties  of  articles  which  this 
country  was  in  a  position  to  supply.  In  all,  it  broadened  the 
view  of  Indian  buyers  and  was  a  great  education  to  merchants 
and  manufacturers  in  this  country. 

Such  a  sudden  turn  to  a  new  market  for  our  merchandise 
was  bound  to  point  out  many  faults  in  trade,  which  lesson, 
through  even  costly  experience  to  many,  has  not  been  made 
the  most  of. 

85 


Outstanding  among  America's  faults  and  inefficiencies 
in  her  trade  with  India  can  be  mentioned  the  following : 

1.  Lack  of  personal  interest  and  a  careful  study  of  the 
desires  of  the  buyer,  the  conditions  of  the  country  and  the 
route  and  handling  of  the  merchandise  once  it  has  been  put 
on  the  ship  in  this  country. 

2.  The  idea  that  the  Indian  market  can  be  entered  and 
left  in  correspondingly  good  and  bad  times,  without  any  se- 
rious detriment  to  America's  trade. 

3.  The  endeavor  by  American  manufacturers  and  mer- 
chants to  get  a  large  slice  of  India's  trade  without  the  will- 
ingness to  spend  even  a  portion  of  the  money  they  outlay  to 
get  trade  from  the  domestic  market. 

4.  Inattention  to  details  of  the  order,  and  trying  to  sell 
to  India  what  we  think  India  should  have  rather  than  what 
India  needs  and  wants. 

5.  Careless  packing  and  marking  of  merchandise. 

6.  Not  sending  the  best  type  of  American  representative 
to  the  country  to  represent  our  wares. 

7.  Dealing  in  India  entirely  too  much  through  the  large 
European  import  and  wholesale  houses  instead  of  establishing 
our  own  branch  offices  with  proper  staffs,  however  small. 

8.  Lack  of  that  type  of  support  accorded  by  foreign 
banks  to  their  merchants — individual  firms  in  many  cases  are 
obliged  to  carry  the  burden. 

9.  Lack  of  a  good  and  efficient  merchant  marine,  where- 
by our  freight  rates  and  shipping  schedules  will  be  such  as 
to  compete  favorably  with  foreign  countries. 

The  above  might  be  said  to  cover  our  greatest  faults  in 
trade  with  India,  some  of  which  are  due  to  carelessness,  etc., 
and  some  to  economic  causes  and  lack  of  proper  legislation 
or  government  support.  India  is  a  tremendous  market  and 
can  consume  vast  quantities  of  manufactured  and  semi-man- 
ufactured goods.  The  development  of  the  country  is  only 
in  its  infancy,  but  is  making  rapid  strides.  India,  with  the 
possible  exception  of  China,  is  the  largest  independent  mar- 
ket in  the  world.  It  is  continually  becoming  broader  in  its 

86 


views  through  contact  with  the  other  markets  of  the  world. 
Though  there  is  much  British  prejudice  to  be  overcome,  the 
people  as  a  whole  are  becoming  more  and  more  partial  to 
American  articles.  If  manufacturers  and  merchants  would 
properly  study  and  organize  for  this  market  with  the  idea  of 
permanently  establishing  themselves  there,  they  will  find  a 
just  reward,  providing  they  have  the  right  article.  Many 
articles  for  which  there  previously  was  no  demand  in  India, 
have,  through  proper  education  of  the  people  and  introduc- 
tion of  the  articles,  become  popular  wares.  It  is  to  be  hoped, 
therefore,  that  this  market  will  receive  early  and  careful  at- 
tention, and  will  not  be  left  as  a  harvest  for  others,  more 
farsighted,  to  reap. 


87 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 


AN     INITIAL     FINE    OF    25     CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.OO  ON  THE  SEVENTH  DAY 
OVERDUE. 


FEB   11  1933 


15198! 
DEC   3 


LD  21-50m-l,'i 


i    , 


.'•*» 


50272' 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


